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 into 4th, Passing Colorado
Massachusetts, Georgia, Washington Break into DII US Top 10
Idaho, Virginia, and Wyoming Fall Out
New Mexico, Maryland, and Ohio Suffer Large Declines
Washington, Oregon, and Wisconsin Enjoy Largest Gains

Oakland, California – BizWorld announces the September 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.

“Oregon and especially Washington were some of this month’s highest climbers,” said BizWorld Founder Tim Draper. “Washington actually broke into the DII US Top Ten. New business formation was a primary factor in both cases and this reflects a long tradition of innovation and entrepreneurship in the Pacific Northwest. For instance, the Seattle area alone is the home of almost a dozen Fortune 500 companies, including Amazon, Microsoft, Starbucks, and Costco. Oregon has its own history of entrepreneurship, most famously Nike but also Columbia Sportswear, Blackstone Audio, Bob’s Red Mill, and Pendleton Woolen Mills. If new entrepreneurs continue to follow in these footsteps, both states could continue their rise up the rankings.”

Top Takeaways from the DII US September 2025 Update

• North Carolina continues to climb the DII US ranks. After overtaking Texas for 5th place last month, it overtook Colorado for 4th place this month due to the second largest increase in cryptocurrency/blockchain venture capital investment growth as well as strong new business formation performance.
• Colorado’s decline from 4th to 5th resulted from below-average performance in new business formation metrics as well as weak growth in cryptocurrency/blockchain-related venture capital investments.
• Massachusetts reentered the DII US Top 10 this month, reversing last month’s decline by rising from 11th place to 8th. This rebound was driven by improvements in new business formation and cryptocurrency/blockchain-related venture capital investments.
• Georgia saw this month’s largest improvement in overall venture capital investment growth, jumping from 12th place to 9th in the DII US.
• Fueled by new strong business formation, Washington rose by five places in the DII US rankings, finishing in 10th place.
• Idaho saw the month’s largest decline, falling from 8th to 14th due primarily to weak new business formation metrics.
• A combination of below average new business formation, low cryptocurrency/blockchain-related venture capital investment growth, and low overall venture capital investment fueled New Mexico’s decline from 24th place to 29th.
• Maryland also dropped as a result of weak business formation, falling from 32nd place to 36th.
• Ohio fell across all three scenarios – from 33rd to 37th in the DII US Balanced, from 34th to 35th in Tech Innovation and from 35th to 38th in Regulatory and Tax – due to weak new business formation metrics.
• Washington’s neighbor Oregon rose from 38th to 34th due to strong new business formation, which, combined with solid overall venture capital investment growth.
• Wisconsin rose from 25th place to 21st as strong new business formation offset minimal cryptocurrency/blockchain-related venture capital investment growth.
• Virginia fell out of the DII US Top 10 and finished in 12th place due to minimal cryptocurrency/blockchain-related venture capital investment growth and below average new business formation.
• Wyoming also fell out of the DII US Top 10, from 10th to 11th, largely due to weak new business formation metrics as well as minimal growth in venture capital investments.
• Nevada fell slightly, from 13th to 15th in the Balanced scenario as strong growth in cryptocurrency/blockchain-related investments failed to offset below-average business formation performance.rom weak new business formation metrics.

“Georgia also broke into our Top 10 this month as a result of the highest rate of recent venture capital investment growth,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “As with Washington and Oregon, it has a long history of entrepreneurship, from Coca-Cola to Home Depot to Chick-fil-A to the Turner Broadcasting System. Other key strengths include housing affordability, the connections provided by the planet’s busiest airport, and a thriving film industry that’s earned the nickname ‘Hollywood of the South.’ These could all serve as foundations for future innovation, entrepreneurship, and economic growth.”

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/