BizWorld Updates Monthly Draper Innovation Index U.S.
States Compete to Land in Top Ten of Best Places to Launch a Startup

• New Hampshire Passes Nevada to 9th in DII US Top 10
• California Slips Again, now at 17th
• Idaho Rises, Nearing Top 10
• Montana, Oregon, and Washington Register Largest Improvements
• New Jersey and Massachusetts Also Climb
• Oklahoma, Nebraska, and Tennessee Decline

Oakland, California – BizWorld announces the December 2024 update to the Draper Innovation Index U.S. (DII US), which evaluates each state’s innovation environment and entrepreneurship climate. Published monthly since 2021, the DII US provides the most well-rounded, up-to-date ranking of entrepreneurial locations, reflecting both traditional and emerging economic metrics, from taxes and regulations to venture capital investment, cryptocurrency friendliness, and blockchain investment trends.

“Growth in venture capital was a major factor in DII US movements this month,” said BizWorld Founder Tim Draper. “Both overall venture capital investment levels and specific cryptocurrency/blockchain-related investments pushed states either up or down the rankings, which speaks to the importance of growing new investment opportunities in cutting-edge, innovative industries of the future. As shown in a recent McKinsey report, innovative industries have both the highest rates of investment returns and the highest long-term revenue growth trends, which means that supporting those industries by attracting entrepreneurs and investors should be a strategic priority for all states.”

Top Takeaways from the DII US December 2024 Update

• To round out 2024, New Hampshire pulled ahead of Nevada for 9th in the DII US thanks to higher overall venture capital investment growth and positive business formation trends.
• Despite outperforming in most business formation metrics, a lack of crypto/blockchain related investment growth and comparatively lower overall investment growth pushed Nevada from 9th to 10th.
• New Jersey benefitted from overall venture capital investment growth and strong business formation performance.
• Weakness across nearly all business formation metrics contributed to California falling from 16th to 17th in the DII US.
• Massachusetts rose from 23rd place to 22nd due to overall due to overall venture investment capital growth and improved business formation trends.
• Montana rose from 26th place to 21st thanks to strong new business formation statistics.
• Oregon and Washington both rose by five places due to overall venture capital investment growth and a combination of crypto/blockchain-related investment growth and new business formations, respectively.
• Oklahoma, on the other hand, fell from 22nd place to 28th because of a lack of both overall venture capital investment growth and crypto/blockchain-related investment.
• Nebraska and Kansas both fell – from 39th place to 42nd and 31st to 33rd, respectively – due to below average business formation trends.
• Tennessee fell from 13th place to 15th due to weakness in crypto/blockchain-related investment and business formation metrics.
• Idaho, on the other hand, rose from 12th place to 11th due to strong business formation statistics and overall venture capital investment growth.

“Despite being by far the largest U.S. state-level economy, California fell to 17th place in the DII US rankings this month,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “This was due in large part to weak business formation statistics, a worrying sign because entrepreneurship and start-up formation is critical integral to innovation and overall economic growth. How can states boost new business formation? One obvious lever to pull is removing regulatory and tax barriers for new businesses. Another would be supporting and expanding entrepreneurship-related educational programs.”

The DII US will continue to post monthly updates which can be accessed here.

About BizWorld

BizWorld.org is a global non-profit organization based in Oakland, CA, whose mission is to enable youth from all backgrounds to unlock the power of entrepreneurship to create career opportunities, inspire self-reliance, and build confidence that drives economic prosperity globally. Founded over 25 years ago by Silicon Valley venture capitalist Tim Draper, BizWorld.org programs teach students real-world 21st century skills and leadership that encourage them to become responsible leaders and entrepreneurs of tomorrow. More than 850,000 students in more than 100 countries have participated in BizWorld programs. https://www.bizworld.org/