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

Florida Retains Top Spot in DII US Rankings
New Hampshire Climbs into 2nd; Utah Slips to 3rd
South Dakota and Arizona Rise in DII Top 10; Colorado and North Carolina Fall
California, New York, and Massachusetts See No Change
Montana and Alaska Break into DII Top 20; North Dakota Improves
Arizona, Idaho, and Montana Post Largest Gains
Oklahoma, Ohio, and Nevada See Largest Declines

San Mateo, California – BizWorld announces the April 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.

“While traditional powerhouses like California, New York, and Massachusetts maintained their positions this month, they are no longer the default destinations for startups. The rapid rise of states like Idaho, Montana, and Arizona shows that innovation is truly becoming decentralized across the U.S.” said BizWorld Founder Tim Draper. “In fact, Montana tied for this month’s largest jump. Montana’s impressive leap into the DII US Top 20 is a testament to the power of favorable tax policies. Entrepreneurs are actively migrating to states where their capital is respected, and Montana is clearly reaping those rewards.”

Top Takeaways from the DII US April 2026 Update

Key Risers: New Hampshire, South Dakota, Arizona, Idaho, Montana
Key Fallers: Utah, Colorado, North Carolina, Oklahoma, Ohio, Nevada

• Florida retained the top spot in the DII US and currently ranks first across all DII US scenarios.
• New Hampshire overtook Utah for second place primarily due to stronger new business formation trends.
• Colorado fell to 7th place in the DII US Top 10 due to weak new business formation metrics, which offset its growth in overall and cryptocurrency/blockchain-related venture capital. This allowed South Dakota—which enjoyed strong new business formation trends—to overtake Colorado for 6th place.
• Arizona tied for the month’s largest improvement, rising from 12th to 8th thanks to rising overall venture capital investments and strong new business formation trends.
• Idaho also tied for this month’s largest gain due to new business formation statistics, rising from 18th to 14th.
• Montana tied for the month’s largest gain. It rose four places, broke into the Top 20 and finished 19th due to strong new business formation metrics.
• Oklahoma saw this month’s largest decline, falling 10 places to 25th, due to below average new business formation trends and no cryptocurrency/blockchain-related venture capital investment growth.
• Ohio saw similar business formation and investment trends as Oklahoma serving to push the state from 30th to 37th, a decline of 7 places.
• North Carolina slipped from 8th to 9th as it failed to generate any cryptocurrency/blockchain-related venture capital investment growth.
• Nevada was pushed out of the DII Top 10 and finished in 12th place as healthy overall venture capital investment growth failed to offset well below-average business formation trends.
• Massachusetts (22nd), California (31st), and New York (49th) all remained in place on the DII US Balanced this month with stable performance on most DII US metrics.
• North Dakota benefitted primarily from above-average new business formation trends and rose from 20th to 18th in the DII US.
• Alaska also broke into the DII Top 20 thanks to strong new business formation trends.

“The reshuffling we see in the Top 10, including South Dakota and Arizona’s rise, underscores how sensitive state rankings are to new business formation. Even with strong VC funding, a state must continue fostering grassroots entrepreneurship to stay competitive,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “The steep declines we saw this month in Oklahoma, Ohio, and Nevada serve as a cautionary tale. Without consistent new business formation and active adoption of emerging sectors like blockchain, states will quickly lose ground in the DII US.”

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/