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

Utah Reclaims 2nd Place from New Hampshire
California and New York Slip Lower
Massachusetts Breaks into DII U.S. Top 10
Wyoming and Idaho Drop in Top 10; Georgia Falls Out
Indiana, Michigan, Connecticut, and Oklahoma See Largest Falls
Illinois, New Mexico, and Washington Post Largest Gains

Oakland, California – BizWorld announces the July 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.

“New York ranked 48th this month on the DII U.S. rankings despite having the third largest state economy,” said BizWorld Founder Tim Draper. “Another DII U.S. scenario makes the reason why very clear – it ranks 49th in DII U.S. Regulatory and Tax scenario. Ultimately, entrepreneurs and investors endeavor to avoid such onerous regulatory and tax burdens, to follow the path of least resistance, so to speak. And, when it comes to state-level regulatory and tax barriers, entrepreneurs and investors can simply pack up and move elsewhere. For instance, think of Chevron, Oracle, Tesla and other major companies that have moved away from California due to the state’s stringent regulatory policy environment and high costs of doing business.”

Top Takeaways from the DII US July 2025 Update

• Utah retook 2nd place from New Hampshire in the DII U.S. Balanced rankings due to stronger overall venture capital investment growth.
• Despite falling one place, New Hampshire (3rd place) stayed ahead of Colorado (4th) and Texas (5th) due to strong new business formation statistics.
• Massachusetts continues to climb up the DII U.S. ladder. Fueled by strong overall venture capital investment trends and particularly cryptocurrency/blockchain-related venture investment growth, it had the largest monthly improvement, rising from 13th place to 8th.
• California fell from 25th place to 26th due to mediocre performance across almost all DII U.S. monthly metrics.
• New York fell again in the DII U.S. rankings due to poor new business formation statistics, finishing at 48th.
• Wyoming fell by one place to 9th due to minimal cryptocurrency/blockchain venture capital investment and weak new business formation metrics. Idaho fell from 9th place to 10th for similar reasons.
• Indiana fell from 15th place to 21st, experiencing the largest monthly decline as below-average new business formation trends offset overall venture capital and cryptocurrency/blockchain-related investment growth.
• Michigan had the month’s second largest decline, falling from 12th place to 17th due to low venture capital investment growth and weak new business formation metrics.
• After rising last month, Connecticut fell from 26th place to 29th due to weak new business formation metrics.
• Illinois rose by four places, finishing 27th overall – thanks to strong overall venture capital investment trends and cryptocurrency/blockchain-related investment growth.

“In contrast to New York, Utah ranks highly on the DII U.S. due to its business-friendly regulatory environment,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “And it’s not just our rankings – outlets like WalletHub and U.S. News and World Report also rank them as one of the nation’s best places to do business. Part of this is due to favorable demographics, such as a growing young population. But it’s mostly the result of deliberate policy decisions to create a welcoming business environment.”

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/