April 17, 2024
Draper Innovation Index US April 2024
BizWorld Updates Monthly Draper Innovation Index U.S. States Compete to Land in Top Ten of Best Places to Launch a Startup
Texas Jumps Over Colorado for 3rd Place, also Climbs to 3rd
in Regulatory & Tax
Utah Still #1, but Colorado (2nd) Overtakes California (3rd) in Tech Innovation
Virginia (10th) Falls as New Hampshire (8th) Climbs in DII US Top Ten
Tennessee (11th) Sees Largest Improvement
Michigan (16th) Sees Largest Decline
North Dakota Rises, Oregon Slips
Oakland, California – BizWorld announces the April 2024 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, long the symbol of global tech innovation leadership, fell to third place on our Tech Innovationscenario this month, behind Utah and now Colorado,” said BizWorld founder Tim Draper. “This reflects the long-term impact of the state’s economic policies and regulatory burdens, which have made it a less welcoming, more challenging business environment for entrepreneurs, startups, and investors; thesebarriers affect all industries, even the largest and most famous tech firms. California’s tax climate is also pushing out businesses and entrepreneurs, hindering its long-term economic growth.”
Top Takeaways from the DII US April 2024 Update:
- While maintaining its 1st place in both the DII Balanced and Regulatory and Tax scenario, Florida rose from 7th to 6th in the Tech Innovation scenario thanks to healthy gains in both venture capital investment trends and cryptocurrency/blockchain related investments.
- Strong growth in venture capital investment was able to offset weakness in cryptocurrency/blockchain related investments, allowing Utah to maintain its 2nd place position in the DII US.
- After falling behind last month, Texas was able to overtake Colorado for the 3rd rank in the DII Balanced thanks to strong growth in cryptocurrency/blockchain-related investments.
- Despite falling to 4th in the DII Balanced, Colorado had comparatively strong venture capital investments and cryptocurrency/blockchain related investments. This allowed it to overtake California in the DII Tech Innovation scenario.
- California fell to third in Tech Innovation due to its weaker cryptocurrency/blockchain investment trends.
Due to comparatively lower venture capital investments, Viriginia fell from 8th to 10th while New Hampshire, with stronger venture capital - investment growth, rose from 10th to 8th.
- After posting significant gains last month, Michigan slipped 4 places in the DII US rankings from 12th to 16th
- Due to weaknesses in both venture capital investment and cryptocurrency related investments, Oregon slipped by two places in the DII Balanced as well as by one place in both the Tech Innovation and Regulatory and Tax scenarios.
- Tennessee rose by 4 ranks in the DII Balanced and 3 ranks in the Regulatory and Tax scenario thanks to comparatively strong venture capital investment growth.
- Climbing from 32nd to 30th in the DII Balanced, North Dakota’s venture investment growth trends allowed it to overtake Iowa and Pennsylvania.
“As a magnet for talent and investment, Florida remains a top destination for those looking to launch and scale their ventures,” said BizWorld Chief Economic Advisor Dr. Wallace Walrod. “Florida's low taxes and pro-business policies are attracting a growing number of startups, entrepreneurs, and established companies seeking growth opportunities fueled by a burgeoning tech sector, strategic location, warm climate, and skilled workforce."
The DII US will continue to post monthly update which can be accessed here.
About BizWorld
BizWorld.org is a global non-profit organization based in Oakland, CA, whose mission is to enable youth from all backgrounds to unlock the power of entrepreneurship to create career opportunities, inspire self-reliance, and build confidence that drives economic prosperity globally. 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/
