In episode 77 the Investing in Impact podcast, I speak with Lawrence Williams III, Partner at the
De-Carceration Fund, on the fund's mission to support startups that address the challenges faced by incarcerated individuals and those reentering society.
The U.S. criminal justice system affects over 6.6 million people and costs the nation more than $80 billion per year.
The De-Carceration Fund is unique in its mission to support and invest in enterprises that directly address the failings of the U.S. criminal justice system. The fund’s multipronged strategy includes backing companies that work in areas such as:
- Preventing Entry: Advocating for reforms in gun control, cash bail, foster care, law enforcement, and domestic violence to reduce the number of individuals who enter the criminal justice system.
- Reducing Suffering: Supporting efforts in juvenile justice, legal costs, prison programming, family support, and sentence reduction to ease the burdens placed on those within the system.
- Ending the Cycle: Addressing recidivism by promoting reform and rehabilitation that help formerly incarcerated individuals reintegrate into society and avoid re-incarceration.
The Economics of Incarceration
The current system perpetuates a cycle of financial exploitation and human suffering. Private companies make approximately $7 billion from prison operations, with over $3 billion of that coming directly from the families of incarcerated individuals.
Each inmate costs an average of $35,000 per year, yet over half of those released return to prison within three years.
This broken system not only drains resources but fails to provide meaningful solutions to reduce crime or support rehabilitation.
The indirect costs of incarceration, estimated at $260 billion annually, further highlight the deep flaws in the system.
These costs ripple through society, affecting families, communities, and the overall economy.