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

Battle for the Top: Utah Jumps Over Wyoming to 2nd in DII US
Nevada Breaks Back into Top 10; Arizona Falls Out
Georgia Slips to 10th
Tennessee, Idaho, and Michigan Climb Top 20; Arizona, Virginia, and Indiana Decline
Massachusetts Slides Again, California 30th and New York 48th
Kentucky, Nevada, and Tennessee Tied for Largest Gains
New Mexico, Virginia, Montana, and Wisconsin Register Largest Drops

San Mateo, California – BizWorld announces the February 2026 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.

“Don’t let the slight rebound in California and New York fool you. Rising one spot after plummeting seven is not a comeback; it’s statistical noise. Until these massive economies fix their tax structures and stop penalizing success, they will continue to bleed talent to hungry, agile states like Nevada,” said BizWorld Founder Tim Draper. “Nevada’s return to the Top 10 isn’t an accident; it’s a signal. While other states are regulating innovation into the ground, Nevada is embracing the decentralized future. The states that win in 2026 will be the ones that realize Bitcoin and blockchain aren’t just assets—they are the infrastructure of the next economy.”

Top Takeaways from the DII US December 2025 Update

Key Risers: Utah, Nevada, Tennessee, Kentucky, Idaho, Michigan
Key Fallers: Wyoming, Arizona, Georgia, Virginia, Indiana, Massachusetts, New Mexico

• Utah jumped from 4^th  to 2^nd thanks to strong performance in new startup formation metrics and rising venture capital investments.
• Wyoming, on the other hand, fell from 2^nd to 4^th as general weakness across multiple new business creation metrics undid last month’s rise.
• Nevada (9^th) tied for the month’s largest increase; it rose by three places and broke back into the DII US Top 10 thanks to a combination of strong cryptocurrency/blockchain-related venture capital investments and new business formation metric performance.
• Arizona fell out of the DII Top 10, dropping from 10^th place to 12^th due to below-average venture capital investment growth and weak new startup formation performance. 
• Georgia fell from 9^th to 10^th, due to weak new business formation metrics and below-average venture capital investment growth.
• Tennessee  improved by 3 places, climbing from 14^th to 11^th in the DII US Top 20 thanks to healthy performance across venture capital and new business creation  indicators.
• Kentucky also improved by three places, rising thanks to venture capital investment growth and new  business formation trends.
• Idaho rose from 16^th to 14^th as strong new startup formation offset minimal cryptocurrency/blockchain-related investment growth.
• Michigan rose from 17^th to 16^th  thanks to strong new business creation performance.
• Virginia had this month’s second largest decline, falling from 11^th place to 15^th as a result of poor new business formation trends and below-average venture capital investment growth.
• Indiana sank  from 15^th to 17^th due to general weakness across all new business formation and venture capital investment metrics.
• Massachusetts fell from 21^st place to 22^nd as weak new business creation metrics offset venture capital investment growth.
• California (30^th) and New York (48^th) each rose one place after last month’s precipitous drops, with California falling 7 places last month.   California also benefited from overall venture capital investment growth while New York benefited from above-average cryptocurrency/blockchain-related venture capital investment growth.
• New Mexico registered this month’s largest decline, falling from 30^th to 36^th due to a combination of minimal venture capital investment growth and weak new business formation metrics.
• Montana slipped  from 24^th to 27^th as venture capital investment growth and new startup formation remained flat.
• Wisconsin also fell to 25^th due to weak new business formation metrics.

“Three middle-sized state economies tied for the highest rise this month,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “Nevada, Kentucky and Tennessee all rose by three places due to a combination of new business formation and venture capital investment outperformance. All three states have above-average Tax Environment and Small Business sub-scores, which provide a strong foundation for growth and means that these states could continue rising the DII US throughout 2026.”

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 San Mateo, 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/