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

Georgia Pulls Ahead of North Carolina and Colorado in DII US Top 10
California Stalls and Massachusetts Falls
Michigan Pulls Ahead of Virginia
North Dakota Leapfrogs Indiana and Washington
Montana Breaks into DII US Top 20, Wisconsin Falls Out
Montana, Nebraska, North Dakota Post Largest Gains
South Carolina, Wisconsin, Minnesota, Oklahoma, and Rhode Island Post Largest Declines

San Mateo, California – BizWorld announces the July 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.

“What the DII US proves month after month is that capital and talent don’t care about legacy reputations anymore,” said BizWorld Founder Tim Draper. “As America celebrates its 250th year, the spirit of domestic competition is more alive than ever, and that’s a great thing. Look at Montana and Nebraska climbing the ladder, or Georgia aggressively stepping up its game—they are proving that the next Silicon Valley can be built anywhere lawmakers choose to trust the builders and get out of the way. If a state makes it easy to form a business and embraces emerging tech like crypto, entrepreneurs will flock there, while traditional heavyweights that choose to over-regulate are stalling out and watching the next generation of innovation happen somewhere else.

Top Takeaways from the DII US July 2026 Update

Key Risers: Georgia, Montana, Nebraska, North Dakota
Key Fallers: South Carolina, Wisconsin, Minnesota, Oklahoma, Rhode Island, North Carolina, Colorado

• Montana was this month’s most improved DII US state, rising 6 places to 20th thanks to strong performance in new business formation metrics.
• Nebraska rose 4 places to 31st, thanks to a combination of strong overall venture capital investment growth and new business formation.
• South Carolina and Wisconsin tied for the month’s weakest performance. South Carolina fell to 34th place due to a slowdown in new business formation and minimal cryptocurrency or blockchain-related venture capital investments. Meanwhile, Wisconsin dropped out of the top 20 to 21st place, driven down by weak new business formation trends.
• Georgia rose from 8th to 6th, overtaking North Carolina (now 7th) and Colorado (now 8th) as it outperformed both states in new business formation metrics and overall venture capital investment growth.
• California saw no change, remaining at 32nd in the DII US as above-average overall venture capital investment growth offset below-average cryptocurrency/blockchain-related venture capital investment growth.
• Massachusetts continued last month’s decline. It fell to 25th in the DII US as venture capital investment growth failed to offset below-average new business formation performance.
• Michigan rose to 14th thanks mainly to overall venture capital investment growth and above-average performance in new business formation metrics.
• Virginia, on the other hand, fell to 15th due to weaker overall venture capital investment and poor cryptocurrency/blockchain-related venture capital investment growth.
• North Dakota rose to 16th, largely due to strong performance in new business formation metrics and positive venture capital investment growth.
• Indiana fell to 17th due to below-average new business formation and little venture capital investment growth.
• Washington also sank by 1 place to 18th as it was outperformed in new business formation trends by many other states.
• Minnesota declined to 36th as it experienced general weakness in new business formation and venture capital investment trends.
• Oklahoma fell to 24th in the DII US, as it saw below-average venture capital investment growth and softness in new business formation.
• Rhode Island reversed last month’s gain, slipping back to 48th as it failed to produce any cryptocurrency/blockchain-related venture capital investment growth.

“Our metrics this month show that new business formation remains the ultimate buffer against broader macroeconomic headwinds,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “Even as venture capital growth experiences localized volatility—particularly within the crypto and blockchain sectors—the states maintaining top-tier status are those that have successfully streamlined the regulatory friction required to launch a new startup.“

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/