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

Idaho Falls Sharply, Drops Out of The DII US Top Ten
Arizona Pulls Ahead of Colorado to 5th
Virginia, Nevada, and New Hampshire Rise in the Top Ten
Kentucky, Nebraska, North Dakota, and Wyoming Fall
New Mexico, Vermont, Kansas, and South Dakota Climb
California and Massachusetts Drop

Oakland, California – BizWorld announces the March 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.

“California and Massachusetts, two of the largest state economies, both fell this month due to a lack of new business formation,” said BizWorld Founder Tim Draper. “While many aspects of a state’s economy are of course dependent on national and even global factors, this is one area where state governments can have a direct impact. It’s no coincidence that both states rank at or near the bottom of the Small Business indicator – if they want to improve their economic climates, all states should take a serious look at how easy (or difficult) it is to start a new business under their laws and bureaucratic regulations.”

Top Takeaways from the DII US March 2025 Update

• After rising to 8th place last month, Idaho fell sharply back to 12th place due to weakening new business formation trends and slowing venture capital investment growth.
• As Idaho fell out of the top ten, Virginia, Nevada, and New Hampshire rose, while Georgia claimed 11th place. Virginia and Nevada saw healthy cryptocurrency/blockchain-related venture capital investment growth and New Hampshire and Georgia benefitted from strong new business formation metrics.
• Arizona (5th) overtook Colorado (6th) for fifth place thanks to this month’s second largest increase in cryptocurrency/blockchain-related venture capital investments.
• Kentucky fell from 36th place to 39th due to slowing venture capital investment growth.
• Wyoming fell from 16th to 19th due to a lack of cryptocurrency/blockchain-related venture capital investment growth and below average new business formation trends.
• Nebraska also fell, to 42nd place’ due to weakening new business formation metrics.
• New Mexico rose by six places – from 30th to 24th – due to the month’s largest increase in cryptocurrency/blockchain-related venture capital investments.
• South Dakota rose from 18th place to 15th place thanks to strong new business formation statistics.
• Strong business formation also lifted Kansas to 31st place from 35th.
• Despite investment growth, both California and Massachusetts fell by one place – to 16th and 23rd place, respectively – due to weak new business formation metrics.
• North Dakota slipped from 32nd to 35th as below-average performance across new business formation metrics and in overall venture capital investment pushed it lower.

“Tax policy is another lever states can pull to improve their economic and entrepreneurial climates,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “Taxes are a major factor in whether to start a new business, or expand an existing business, or invest in a promising startup. State policymakers should take a good look at whether their tax laws are really encouraging entrepreneurship, investment, and economic expansion.”

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 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/