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

Colorado Retakes 5th from Arizona in the DII US rankings
New Hampshire Reclaims 9th from Nevada
California and New York Fall
Massachusetts Sees No Change
Alaska, North Dakota and Oregon See Largest Improvements
New Mexico, Vermont and Washington Register Steepest Declines
Montana Climbs into DII US Top 20

Oakland, California – BizWorld announces the April 2025 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.

“Some of the nation’s largest state economies do not rank particularly highly on the DII US,” said BizWorld Founder Tim Draper. “California and New York, the first and third largest state economies, both fell again this month to 18th and 39th, respectively, and are nowhere near the Top Ten. While there are many reasons why this is so, two factors are clear: tax policy and the high cost of living, primarily due to overregulation as seen in the DII US sub-indices. With technologies making businesses more mobile than ever, investors, CEOs, and especially entrepreneurs are going to vote with their feet when it comes to the cost of doing business. If a growing percentage of people are thinking about leaving your state, then you’re missing out on many, many potential future entrepreneurs and innovators.”

Top Takeaways from the DII US April 2025 Update

• Supported by above-average venture capital investments and stronger new business formation statistics, Colorado improved from 6th to 5th in the DII U Top Ten.
• Despite seeing strong investment growth in cryptocurrency/blockchain-related sectors it lagged in overall investment growth, causing Arizona lagged in overall venture capital investment growth, causing the drop from 5th to 6th.
• Strong new business formation trends helped New Hampshire overtake Nevada for 9th in the DII US Top Ten.
• While Nevada did register strong overall and cryptocurrency/blockchain-related venture capital investment growth its new business formation metrics slowed, lowering it from 9th to 10th.
• California saw below average performance in both overall and crypto/blockchain-related venture capital investments but was primarily pulled lower due to weakness in new business formation metrics serving to push it from 16th to 18th.
• New York fell by three places, from 36th place to 39th, due to weak business formation statistics.
• Massachusetts, on the other hand, remained in 23rd place as rising overall investments offset minimal crypto/blockchain-related growth.
• Alaska and North Dakota saw the month’s largest increase; both rose by 9 places. Alaska rose to 21st place due to strong business formation, while North Dakota rose to 26th place due to the month’s strongest overall investment growth.
• Oregon rose by 6 places due to very strong business formation and the month’s second highest overall investment growth.
• New Mexico and Vermont, which both fell by 6 places, had the month’s worst performances. The former fell due to weak business formation statistics, which outweighed crypto/blockchain-related investment growth, while the latter had weak performances across nearly all metrics.
• A combination of below average business formation statistics and a lack of crypto/blockchain-related investment growth pushed Washington out of the top 20; it fell from 18th place to 22nd.
• Montana rose into the DII US Top 20 due to the month’s strongest crypto/blockchain venture capital investment growth.

“Alaska and North Dakota, the 47th and 49th largest state economies, climbed the highest on the DII ranks this month,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “Despite their relatively small sizes, both economies had a least one significant advantage – both finished in the Top Ten on the Tax Foundation’s 2025 State Tax Competitiveness Index. As with a high cost of living, high tax rates can push away potential entrepreneurs, innovators, and investors. And, conversely, low tax rate states attract entrepreneurs like a magnet.”

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 equip future generations with entrepreneurial life skills to unlock their potential and create economic opportunity. 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/