UpTrust Raises $2M to Reduce Mass Incarceration Costs

Understanding Technical Violations in the Criminal Justice System

The term technical violation represents a problematic phrase employed by the U.S. government. It often obscures the complexities inherent within the contemporary criminal justice framework. Following completion of a sentence, individuals are frequently subjected to probation. This involves adherence to numerous stipulations governing their activities and associations.

The Cost of Technical Violations

A technical violation occurs when an individual fails to comply with these probation conditions. Consequently, they may be re-incarcerated, potentially facing months or even years in prison for seemingly minor infractions. For example, arriving a few minutes late to a parole appointment could trigger this outcome.

These violations impose substantial financial burdens on society. A report from Columbia University and The Independent Commission on New York City Criminal Justice and Incarceration Reform, highlighted by the Times Union, revealed that New York incarcerates more individuals for technical parole violations than any other state. This practice costs taxpayers at least $683 million annually.

Introducing Uptrust: A Potential Solution

The situation is both reminiscent of Orwellian and Kafkaesque scenarios, representing a significant misallocation of public funds. However, opportunities for improvement exist, and Uptrust aims to address this issue.

Uptrust is a service designed to reconnect individuals re-entering society with their legal representation and crucial court documentation. It provides them with essential information regarding schedules, appointments, regulations, and procedures. This support helps prevent technical violations, facilitating successful reintegration and generating cost savings for taxpayers.

Recent Funding and Growth

The company recently announced a $2 million seed funding round. This investment comes from the Decarceration Fund, Luminate, and Stand Together Ventures Lab, supplementing a previous $1.3 million round raised last year.

The Origins of Uptrust

Founded in 2015 and launching its initial product in 2016, Uptrust was co-founded by Jacob Sills and Elijah Gwynn. Their focus was on identifying ways to enhance the criminal justice system. While exploring options like bail bonds, they consistently returned to a core problem: individuals frequently re-entered the system due to missed appointments or other technical violations.

“There are way too many people not exiting the system … and they are circling back through,” Sills explained. The service operates through text messaging or a dedicated app, often in collaboration with a public defender, who has a greater likelihood of reaching their clients.

Expansion and Future Plans

Following years of product iteration and testing, Uptrust has experienced significant growth. It is now implemented in 150 locations across 28 states, an increase from 30 sites just 18 months ago. The state of Virginia plans to expand the service statewide by the end of the year or early next year.

Currently, the company charges governments a fee for the service, aiming to avoid financial burdens on end-users. However, Uptrust envisions a future where it connects its user base with additional services as they reintegrate into society.

“More than half of them have challenges accessing health care,” Sills noted. He foresees opportunities in areas such as healthcare, finance, banking, and housing, where the app could play a vital role.

Strategic Investment and Diverse Perspectives

Sills and his team deliberately sought investors with a deep understanding of criminal justice issues. They aimed to secure funding from organizations that would appreciate both the problem being addressed and Uptrust’s potential for success.

The investment group reflects a diversity of perspectives. The Decarceration Fund focuses on reducing incarceration rates, while Luminate, founded by Pam and Pierre Omidyar, prioritizes civic engagement. Stand Together Ventures Lab, funded by Charles Koch, also supports criminal justice reform to limit governmental overreach.

Investor Confidence and a Unique Approach

Chris Bentley, managing principal at Decarceration Fund, chose Uptrust as the firm’s initial investment. He believed the company demonstrated a clear understanding of the needs of this specific population. He emphasized the importance of avoiding unintended consequences, highlighting the firm’s focus on companies with robust safeguards and business models aligned with positive outcomes.

“Half of our investment committee are founders themselves but are also returning citizens with real, lived experience with the system,” he said.

Looking Ahead

Uptrust now comprises a team of 15 individuals, based in San Francisco and along the Eastern Seaboard. Sills acknowledged the poor track record of for-profit companies in this sector, stating, “We are trying to prove that you can make money and do good and have real impact.”

Updated May 18, 2021: Clarification regarding Luminate’s funding structure. It is independently funded by The Omidyar Group by Pam and Pierre Omidyar, and is not part of the Omidyar Network.