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

DII US Top 10 Sees Major Shakeup; Florida Retains 1st Place
Legacy Tech Hubs California, Massachusetts, and New York All Register Declines
Emerging Ecosystems Utah, Texas, Wyoming, North Carolina, Georgia, Arizona Rise in Top 10
New Hampshire and Colorado Fall in Top 10
Tennessee Breaks into DII US Top 10; South Dakota Falls Out
Oklahoma, Ohio, Pennsylvania, Rhode Island, and Wisconsin Post Largest Gains
South Dakota, Kansas, and Washington See Largest Declines

San Mateo, California – BizWorld announces the June 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. In the pursuit of continuing to integrate insightful, up-to-date information regarding state’s economic and business environments, the DII US has newly incorporated CNBC’s Top States for Business 2025 dataset.

“California’s continued drop in the DII US is a monumental shift. While it still commands the highest overall venture capital growth, the state’s high cost of living and heavy regulatory burdens are actively driving entrepreneurs to look elsewhere to launch their startups,” said BizWorld Founder Tim Draper. “We are seeing the consequences of complacency in California. You cannot rely on a historical legacy of innovation if the current economic environment creates insurmountable barriers for new founders. Until the state addresses its core livability and regulatory issues, we expect this downward trend to continue.” the country – and globe.”

Top Takeaways from the DII US April 2026 Update

Key Risers: Utah, Texas, Wyoming, North Carolina, Georgia, Arizona, Oklahoma, Ohio, Pennsylvania, Wisconsin
Key Fallers: California, New York, Massachusetts, New Hampshire, Colorado, South Dakota, Kansas, Washington

• The DII US Top 10 experienced a major shakeup, with New Hampshire falling from 2nd to 4th due to weak new business formation metrics, Texas rising from 5th to 3rd due to strong venture capital investment growth, and Utah taking New Hampshire’s slot in 2nd place thanks to healthy new business formation metrics and cryptocurrency/blockchain-related venture capital growth.
• While California saw the strongest overall venture capital investment growth this month, it fell from 30th place to 32nd due to lower CNBC’s Best States for Business rankings.
• New York fell from 48th place to 49th due to general weakness across DII US data indicators.
• Massachusetts dropped from 22nd to 24th as it failed to produce cryptocurrency/blockchain-related venture capital investment growth and posted considerable weakness across all new business formation metrics.
• Wyoming rose from 8th place to 5th thanks to solid venture capital investment growth and above-average new business formation metrics.
• North Carolina rose from 7th place to 6th after finishing first in CNBC’s Top States for Business in 2025.
• Colorado sank 3 places, from 4th to 7th due to considerable weakness across new business formation metrics and below-average overall venture capital investments.
• Georgia (8th) and Arizona (9th) both rose by one place thanks to above-average performance in new business formation metrics and comparatively strong rankings in CNBC’s Top States for Business.
• Tennessee broke into the DII US Top 10 this month, finishing 10th as a result of its strong CNBC ranking and overall venture capital investment growth.
• South Dakota saw little movement in venture capital investment growth alongside below-average new business formation performance, pushing the state 5 places lower and out of the DII Top 10, from 6th to 11th.
• Washington declined 4 places, falling to 17th due to below-average new business formation performance.
• Wisconsin rose from 21st place to 18th as it saw the second largest gain in cryptocurrency/blockchain-related venture capital investment growth.
• Oklahoma reversed last month’s decline and improved from 29th to 22nd thanks to improvements from CNBC’s Top States for Business and overall venture capital investment growth.
• Ohio improved from 32nd to 29th as it posted the largest increase in cryptocurrency/blockchain-related venture capital investment growth.
• Pennsylvania moved up to 25th in the DII US Balanced thanks to healthy performance in venture capital investment growth.
• Rhode Island jumped from 49th to 46th, thanks to the strongest performance in new business formation metrics alongside solid overall venture capital investment growth.
• Kansas fell to 28th on the DII Balanced rankings as it failed to generate any cryptocurrency/blockchain-related venture capital investment growth.

“This month’s DII US paints a clear picture: the old guard is struggling. With California, New York, and Massachusetts all slipping in the ranks, it’s evident that founders are no longer tethered to traditional coastal tech hubs and are instead flocking to states that offer better economic freedom and lower operational costs,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “The simultaneous declines of New York, Massachusetts, and California signal a massive decentralization of American innovation. High taxes, strict regulations, and towering costs of living in these legacy states are suffocating new business formation, allowing agile, pro-business states in the Sunbelt and Mountain West to capture an increasing share of the startup market.”

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/