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 October 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. This month’s release includes DII’s annual update of Pitchbook’s Venture Capital Deal Count metrics measuring recent investment growth momentum and deal activity within U.S. states.

“South Dakota is making a clear statement that it’s open for business regarding the future of finance,” said BizWorld Founder Tim Draper. “The state’s lack of a personal income tax, coupled with legislative efforts to define digital assets and authorize state investment in Bitcoin, signals a forward-thinking approach to fostering a robust environment for cryptocurrency and blockchain innovation. At the Draper Innovation Index, we applaud states that are moving in this direction. This is the kind of regulatory foresight that attracts entrepreneurs and investor capital, positioning South Dakota as a promising hub for the rapidly burgeoning digital economy.”

Top Takeaways from the DII US October 2025 Update

• South Dakota saw the month’s largest improvement, breaking back into the DII US Top Ten, rising from 16th place to 7th due to the month’s largest proportion of venture capital investment growth as well as rising venture capital deal counts.
• Nevada also broke in top the DII US Top Ten, climbing from 15th place to 9th thanks to the month’s largest cryptocurrency/blockchain-related venture capital investment growth.
• Georgia and Washington both fell out of the Top Ten, dropping to 11th and 12th respectively. Washington suffered from relatively low venture capital investment growth. Georgia registered below-average cryptocurrency/blockchain-related venture capital investments.
• North Carolina fell from 4th place to 6th due to poor cryptocurrency/blockchain-related venture capital investment growth. Colorado and Texas overtook it for 4th and 5th place, respectively. Colorado benefited from above-average venture capital investment growth while Texas continued to boast healthy overall venture capital investments and strong venture capital deal flows.
• Delaware dropped from 13th to 20th due to below average venture capital investment growth.
• Arizona fell from 7th place to 10th. While remaining in the Top Ten, it suffered from poor cryptocurrency/blockchain venture capital investment growth and minimal change in venture capital deal counts.
• California remained in 24th place in the Balanced scenario and 3rd in Tech Innovation as strong venture capital deal flow counts offset weakness in several other data indicators.
• Alabama fell from 42nd place to 45th due to declining venture capital deal flow and below-average cryptocurrency/blockchain-related venture capital investments.
• Louisiana, on the other hand, rose from 45th to 42nd thanks to growing cryptocurrency/blockchain venture capital investments.

“Colorado’s consistent high ranking in the Draper Innovation Index is a direct reflection of its forward-thinking approach to innovation, particularly in the cryptocurrency space,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. By becoming the first state to accept Bitcoin for tax payments, Colorado has sent a clear signal that it is a leader in fostering a regulatory environment where digital assets can thrive. This embrace of Bitcoin and blockchain technology is a key indicator of a vibrant entrepreneurial ecosystem, attracting venture capital and solidifying its position as a top destination for innovators.”

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/