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

New Hampshire Pulls Ahead of Utah for 2nd in the DII US
South Dakota Falls Sharply Out of Top 10 and Registers Largest Decline
Virginia Breaks into Top 10; Wyoming and Arizona Climb, North Carolina Falls
New York Declines Further to 47th
Oregon, Michigan, and South Carolina See Largest Drops
North Dakota Sees Largest Gain Followed by Kentucky, Maryland, and Virginia

Oakland, California – BizWorld announces the December 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.  With the Federal Government shutdown over, Business Formation Statistics from the U.S. Census Bureau have been reintegrated into the DII US monthly updates.  

“North Dakota is the undisputed breakout story of December, vaulting up ten spots to reach 18th overall,” said BizWorld Founder Tim Draper. “We aren’t just seeing a single statistical anomaly; the state posted double-digit improvements in its regulatory environment scores and significant gains in tech innovation. This isn’t just about rising ranks; it’s about the state’s bold entry into the digital financial system. With the Bank of North Dakota advancing its ‘Roughrider’ stablecoin initiative, the state is doing more than just welcoming crypto—it is building the actual public banking infrastructure to support it. It sends a loud message that they are open for business and serious about competing to welcome startup activity, which explains North Dakota’s recent growth in venture capital investment momentum.”

Top Takeaways from the DII US December 2025 Update

• New Hampshire (2^nd) overtook Utah (3^rd) for second place due to strong new business formation metrics.
• South Dakota saw the month’s largest decline, falling from 6^th place to 15^th due to below-average venture capital investment, below-average new business formation statistics, and minimal cryptocurrency/blockchain-related venture capital investment growth.
• North Dakota, on the other hand, saw the month’s largest rise, rising 10 places to finish 18^th overall. Unlike its southern neighbor, it benefited from strong venture capital investment growth.
• Wyoming continues to rise up the DII US ranks, jumping from 8^th place to 6^th thanks to the largest monthly increase in cryptocurrency/blockchain-related venture capital investments.
• Arizona also rose two places, from 9^th to 7^th, thanks to above-average performance across multiple business formation statistics.
• North Carolina fell across all three scenarios – from 7th to 8th in the DII US Balanced, from 9th to 11th in Tech Innovation and from 7th to 9th in Regulatory and Tax – due to minimal cryptocurrency/blockchain-related venture capital investment growth and weaker business formation metrics.
• Virginia returned to the DII US Top Ten, rising from 13^th place to 9^th on the back of strong new business formation statistics and strong cryptocurrency/blockchain-related venture capital investments.
• After rising last month, Oregon fell from 30th to 36th due to below average new business formation trends.
• Michigan and South Carolina dropped 5 places due also to low new business formation trends.
• Kentucky and Maryland both rose by 4 places in the rankings due to strong new business formation metrics.
• New York slipped from 46^th to 47^th as growth in overall venture capital investments failed to offset below average performance in new business formation statistics.

“The entrance of Virginia into the DII US Top 10 this month is a critical development,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “By overtaking traditional strongholds to claim the 9th spot, Virginia is proving that the innovation landscape in the U.S. is becoming more balanced. While other regions are adding layers of red tape, Virginia has maintained a ‘light-touch’ regulatory framework for digital assets that is paying off. By avoiding the heavy-handed money transmitter laws seen elsewhere, they’ve effectively created a sanctuary for Bitcoin innovation in the mid-Atlantic.”

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/