BizWorld Updates Monthly Draper Innovation Index U.S.
States Compete to Land in Top Ten of Best Places to Launch a Startup
North Carolina Overtakes Texas for 5th place
Virginia Moves into DII US Top 10, Massachusetts Falls Out
Idaho Rises to 8th, Wyoming Falls to 10th
Delaware and Alabama See Largest Gains
Arkansas, Maryland, Illinois, and Massachusetts Register Largest Declines
Oakland, California – BizWorld announces the August 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, a consistent presence in the DII Ten, has now broken into the DII US Top Five,” said BizWorld Founder Tim Draper. “In the short term, this was the result of recent advances in crypto-related investment growth. Looking at the bigger picture, North Carolina’s innovation and entrepreneurship ecosystem is driven by its Research Triangle, home to three universities, the nation’s largest research park, and a who’s who of high-tech companies. Investing in R&D and innovators remains builds a strong economic foundation, one with significant long-term benefits. Simply put, a population of educated, knowledgeable people is one of the biggest draws for companies, entrepreneurs. and investors.”
Top Takeaways from the DII US August 2025 Update
- North Carolina overtook Texas for 5th place thanks to above-average new business formation metrics and the month’s second largest increase in relative cryptocurrency/blockchain venture capital investment growth. Texas fell due to general weakness across multiple DII US metrics compared to North Carolina.
- After breaking into the top 10 last month, Massachusetts fell from 8th to 11th in the DII US this month, largely due to comparatively weaker new business formation performance and below-average overall venture capital investment growth.
- Delaware had the month’s biggest improvement, jumping from 22nd place to 14th due to strong new business formation and the month’s largest increase in relative cryptocurrency/blockchain venture capital investment growth.
- Idaho rose from 10th to 8th thanks to above-average cryptocurrency/blockchain investment growth.
- Alabama also rose from 45th to 41st due to new overall venture capital investment growth.
- Illinois, on the other hand, fell from 27th to 30th, with weak new business formation metrics being the primary cause.
- Virginia broke into the DII US Top Ten, rising from 11th place to 9th due to above-average business formation.
- Wyoming fell one spot to 10th due to weak cryptocurrency/blockchain venture capital investment growth and slow new business formation trends.
- Arkansas and Maryland both fell by 4th places, finishing in 48th and 32nd place, respectively, after this month’s largest declines. Arkansas fell due to weakness in overall and cryptocurrency/blockchain venture capital investment trends while Maryland suffered from weak new business formation metrics.
“Idaho rose across all three DII US scenarios this month,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “It currently ranks 8th in the DII US Balanced scenario despite its relatively small population and economy. On the other hand, a much larger state like Illinois fell down the ranks in all three scenarios. Idaho benefitted from an increase in cryptocurrency/blockchain-related venture capital investment growth. In the light of the newly passed GENIUS Act, which creates a positive regulatory environment for stablecoins in the United States, crypto-related investment trends will be even more of a factor in the DII rankings 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/