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

Idaho Breaks into the DII US Top Ten
Colorado Overtakes North Carolina, Virginia Declines
New Hampshire Falls out of the Top Ten
Washington Falls Sharply
California Posts Reversal from Previous Month
Nebraska Rises, Missouri and Vermont Fall

Oakland, California – BizWorld announces the January 2025 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.

“Idaho performed strongly this month, breaking into the DII US Top Ten due to its strong venture capital investment growth,” said BizWorld Founder Tim Draper. “This is despite having the nation’s 39th largest population and its 39th largest economy by GDP. Idaho’s success speaks to the paramount importance for states to prioritize attraction of venture capital investment regardless of size. State-level policymakers should consider emulating Idaho’s regulatory and legislative levers that they can also use to make their states more attractive to out-of-state and even international investors.”

Top Takeaways from the DII US January 2025 Update

• Idaho continued to climb, breaking in the DII US Top Ten and finishing in 8th place. This was due to significant increases in venture capital investment.
• Virginia fell from 8th place to 9th due to relatively weak new business formation statistics.
• Colorado rose to 4th place in the DII US, overtaking North Carolina, thanks primarily to comparatively stronger business formation statistics.
• Stronger growth in overall venture capital investments failed to offset weaker performance in new business formation statistics, pushing North Carolina from 4th to 5th.
• Washington fell sharply from 14th place to 19th due to a lack of overall venture capital investment growth, a lack of crypto/blockchain-related investment growth, and weakening new business formation trends.
• California reversed last month’s decline thanks to cryptocurrency/blockchain related venture capital investment growth and stronger new business formation data. California rose in both the Balanced (from 17th to 15th) and remained in first place in Tech Innovation.
• Strong new business formation trends pushed Nebraska up the ranks of all three DII US scenarios.
• Missouri and Vermont both fell (by four and three places, respectively) due to a lack of cryptocurrency/blockchain-related investment growth.
• New Hampshire fell out of the DII Top Ten, finishing in 11th place, due to weakening new business formation statistics. New York and New Jersey also experienced minor declines for the same reason..

“Washington and Missouri fell across all three DII US scenarios,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “In both cases, this was largely due to a lack of crypto/blockchain-related venture capital investment. With a new administration, one that has signaled interest in cryptocurrency regulatory reform, crypto and blockchain could become onramps and even superhighways to economic growth and prosperity – if states create the right regulatory, innovation, and economic climates for crypto entrepreneurs and investors to initiate and create this growth.”ndia is the world’s fifth largest economy by nominal GDP and both the UN and Goldman Sachs predict solid growth in 2025. India could rise much higher this year if its leaders embrace cryptocurrency, pro-growth small business-friendly policies, and economic freedom.”

The DII Global will release monthly updates to continually reflect the latest developments in global innovation and entrepreneurship, available here.

About BizWorld

BizWorld.org is a global non-profit organization based in Oakland, 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/