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

North Carolina Climbs to 3rd, Passing Texas
New Hampshire Continues to Climb DII US Top 10; Virginia Slips
California, Massachusetts and New York See Small Improvement
Alaska, Oregon, and Montana See Largest Gains
North Dakota, Missouri, Michigan, Minnesota, and South Dakota Fall
Idaho Nearly Breaks into DII US Top 10

Oakland, California – BizWorld announces the May 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.

“North Carolina, which rose to third overall this month, has been rising up the DII US rankings since we began this project,” said BizWorld Founder Tim Draper. “This reflects, among other things, the state’s long, rich history of innovation and entrepreneurship. Founded in 1959, Research Triangle Park is the oldest and largest research park in the United States; it occupies 7,000 acres and hosts more than 300 companies and 65,000 workers. Charlotte is home to eight Fortune 500 companies, including Bank of America and Lowe’s. This strong business environment will likely keep North Carolina near the top of the DII US ranks for the foreseeable future.”

Top Takeaways from the DII US May 2025 Update

• With above-average new business formation performance,  North Carolina was able to overtake Texas for 3^rd in the DII US.
• At the same time, increases in monthly investments into cryptocurrency/blockchain-related technologies failed to offset below-average new business formation performance for Texas, pushing the state to 4^th in the DII US.
• Following last month’s upward momentum, New Hampshire rise was further supported by growing overall venture capital investments and very strong performance in new business formation metrics, helping it to overtake Virginia for 8^th in the DII US.
• Virigina, on the other hand, while registering decent monthly venture capital investment growth, saw comparatively weaker new business formation metrics, falling from 8^th to 9^th in the DII US.  
• Idaho saw steady growth in overall venture capital investment, cryptocurrency/blockchain related investments, and healthy new business formation performance which lifted its rank from 12^th to 11^th in the DII US.
• While both California and New York saw below-average new business formation performance, rising venture capital cryptocurrency/blockchain-related investments and overall positive venture capital investment trends helped move California up from 18^th to 17^th and New York from 39^th to 38^th in the DII US.
• Massachusetts outperformed Washington in all business formation metrics as well as overall venture capital investment growth, helping move Massachusetts from 23^rd to 22^nd in the DII US and from 5^th to 4^th in Tech Innovation.
• Alaska continues to improve month-over-month, further supported by growing overall venture capital investments and comparatively strong performance in new business formation metrics, which drove the largest improvement this month from 21^st to 15^th.
• Oregon saw the second largest rank improvement this month despite slower venture capital investment growth, moving from 32^nd to 28^th in the DII US, thanks to above-average performance in new business formation metrics.
• Supported by the largest monthly increase in cryptocurrency/blockchain-related investments, Montana rose from 19^th to 16^th and from 30^th to 23^rd in Tech Innovation.
• Following last month’s rise, North Dakota posted this month’s largest decline, falling 5 places from 26^th to 31^st in the DII US as growth in overall venture capital investments failed to offset poor new business formation performance.
• Missouri fell 4 ranks in the DII US, from 17^th to 21^st, and 5 ranks in Tech Innovation, from 22^nd to 27^th, due to a combination of no growth in cryptocurrency/blockchain related investments and below-average performance in new business formation metrics.
• With similar weak performance in business formation metrics and cryptocurrency investments as Missouri, Michigan dropped from 16^th to 19^th in the DII US, tied with Minnesota and South Dakota for third largest drops this month.

“Second place Utah also has a rich entrepreneurial history,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “Utah has been ranked as the top U.S. state in the Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index for 18 consecutive years. Earlier this month, Utah was also ranked at the top of the U.S. News Best States rankings for the third consecutive year, which measures economic potential broadly. As with North Carolina, Utah’s strong emerging innovation and entrepreneurship community will continue to be a key strength going forward.”

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/