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

Texas Overtakes Wyoming for 4th, Utah Hangs Onto 2nd
Virginia and Indiana Rise in DII US Top 20, Michigan and North Dakota Slip
California and New York Decline; Massachusetts Remains Steady
Oklahoma, Montana, and Ohio See Largest Gains
Idaho, Kentucky, North Dakota, Maryland, and Kansas See Largest Drops

San Mateo, California – BizWorld announces the March 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.

“Entrepreneurship and innovation is the name of the game here at BizWorld,” said BizWorld Founder Tim Draper. “While mega-metros in California and New York might have the highest raw number of legacy businesses, that doesn’t necessarily translate to a top spot on the DII US. Their continued slide to 31st and 49th respectively tells the real story. An unfriendly tax or regulatory environment doesn’t just offset economic advantages—it actively drives the next generation of innovators and venture capital out of state. The rise of Texas to the number four spot highlights another critical aspect. The states that are actively leaning into emerging technologies, specifically by fostering friendly environments for cryptocurrency and blockchain venture capital, are the ones future-proofing their economies.”

Top Takeaways from the DII US March 2026 Update

Key Risers: Texas, Oklahoma, Montana, Ohio,
Key Fallers: California, New York, Idaho, Kentucky, Kansas, Maryland, North Dakota

• Texas pushed ahead of Wyoming to 4th in the DII US thanks to higher growth in overall and cryptocurrency/blockchain-related venture capital investments as well as stronger new business formation.
• Utah hung onto 2nd place thanks to overall venture capital investment trends and above average performance in new business formation metrics.
• Virginia rose from 15th place to 14th thanks to both overall and cryptocurrency/blockchain-related venture capital investments.
• Indiana also rose to 16th, thanks to strong performance on new business formation metrics.
• Oklahoma saw this month’s largest improvement. It rose to 15th due to strong new business formation metric performance as well as considerable growth in cryptocurrency/blockchain-related venture capital investments.
• Idaho, on the other hand, had the largest monthly decline. It fell to 18th as growth in venture capital investments failed to offset below-average new business formation metric.
• Michigan saw a small decline, falling from 16th to 17th on comparatively weak venture capital investment trends.
• North Dakota fell from 18th place to 20th due to a lack of venture capital investment growth.
• California fell to 31st due to below average new business formation, which offset venture capital growth.
• New York also experienced below average new business formation, falling from 48th to 49th.
• Massachusetts remained in 22nd place as venture capital investment growth offset weak new business formations.
• Montana (23rd) and Ohio (30th) tied for the second largest monthly improvement. Both states improved by 4 places, with Montana benefitting from strong new business formation growth and Ohio seeing the largest increase in cryptocurrency/blockchain-related venture capital investments.
• Kentucky declined to 27th due to below average performance in cryptocurrency/blockchain-related venture capital investment and new business formation.
• Maryland and Kansas both fell by two places due to weaknesses across multiple DII US metrics. Maryland finished in 39th place, while Kansas finished in 25th place.

“New Hampshire currently ranks third on the DII US despite ranking 40th in GDP and 42nd in population size,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “Why? It proves that policy outweighs sheer size. By maintaining one of the most business-friendly tax environments in the country—with no sales or income tax—New Hampshire punches far above its weight class in attracting top-tier entrepreneurs.”

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/