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

Colorado, North Carolina, and Georgia Climb DII US Top 10
Texas, Wyoming, and Arizona Drop
Missouri Breaks into DII US Top 20, Alaska Rises, North Dakota Falls
California, New York, and Massachusetts Steady
Ohio, Colorado, Delaware, and Wisconsin Post Largest Gains
Montana, Oklahoma, and Wyoming See Largest Declines

San Mateo, California – BizWorld announces the May 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.

“As always, new business formation (or the lack thereof) was a major factor this month,” said BizWorld Founder Tim Draper. “While states can’t directly create new entrepreneurs, one of the levers they can pull is the funding of entrepreneurial education. Young people have started some of the most iconic companies: think Steve Jobs and Apple, Walt Disney and his studio. The leading indicator of a state’s future economic competitiveness is the entrepreneurial mindset of its youth. Giving young people the tools and knowledge necessary to start their own businesses should be a priority for every state.  That is exactly the critical infrastructure BizWorld is building across the country – and globe.”

Top Takeaways from the DII US April 2026 Update

Key Risers: Colorado, North Carolina, Georgia, Ohio, Colorado, Delaware
Key Fallers: Wyoming, Arizona, Montana, Oklahoma

• Colorado jumped 3 places in the DII US, finishing 4th. It saw the month’s single largest increase in cryptocurrency/blockchain-related venture capital investments.
• North Carolina rose from 9th place to 7th due to exceptional business new formation trends, which offset tepid venture capital investment growth.
• Ohio was the month’s highest climber, rising from 37th to 32nd thanks to the second highest increase in cryptocurrency/blockchain-related venture capital investment growth and above-average new business formation metrics.
• Montana, on the other hand, saw the month’s largest decline, falling from 19th place to 26th as a result of marginal new venture capital growth and below-average new business formation.
• Oklahoma saw the month’s second largest decline, slipping from 25th to 29th in the DII Balanced due to weakness across multiple trending indicators.
• Texas slipped from 4th to 5th as rising venture capital investments failed to offset below-average new business formation stats.
• Wyoming fell from 5th place to 8th due to weakness in new business formation metrics and a lack of cryptocurrency/blockchain-related venture capital investments.
• Arizona also declined this month, slipping from 8th to 10th due to comparatively weak venture capital investment growth.
• Georgia, on the other hand, rose from 10th to 9th thanks to positive performance across multiple DII US indicators.
• Alaska continues to rise in the DII US due to venture capital investment growth and new business formation. It jumped from 20th to 18th this month.
• North Dakota fell from 18th place to 19th as above-average new business formation metrics failed to offset weak venture capital investment growth.
• Missouri broke into the DII US Top 20 this month, improving to 20th thanks primarily to new business formation performance.
• Delaware rose to 23rd thanks to healthy growth in overall and cryptocurrency/blockchain-related venture capital investments.
• Wisconsin also improved by 3 places, finishing in 21st place, thanks to cryptocurrency/blockchain-related venture capital investments and new business formation metrics.
• Massachusetts (22nd), California (30th), New York (48th) all remained in place in this month’s rankings.

“The shifting landscape of our DII US Top Ten proves that no state has a permanent monopoly on innovation. Entrepreneurs are highly mobile, and they will naturally migrate to the environments that offer the most opportunity,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “The states that are truly pulling ahead in our rankings are those embracing the future of finance, specifically cryptocurrency and blockchain. Colorado and Ohio are prime examples of how welcoming these new technologies attracts significant venture capital and drives economic momentum.”

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/