Russ White 0:00
Erica Kangas, MSU class of 2010, is the Vice President of Engineering and a founding team member at DOE, a mission back startup with more than a million dollars in venture capital funding. That's quickly growing in part due to the application of the knowledge and skills she acquired as a double major in mathematics and economics and member of the Honors College at Michigan State University. And with APR being National Financial Literacy Month, there's a timely tie to doze mission of creating economic equity for women, as well as an issue. Erica is personally passionate about creating an inclusive technology supply chain. Erica, great to welcome you to MSU Today.

Erica Kangas 0:41
Thanks so much for having me, it's good to see you .

Russ White 0:44
Briefly describe sort of your career path from 2010, graduating from MSU, to where you are now at Dough.

Erica Kangas 0:50
Absolutely. So after graduating from Michigan State, I actually initially started my career in research and evaluation, initially starting as a data analyst for the City Year national valuation team. And while I was there, I just had this incredible experience working for this national nonprofit, and really being able to see firsthand tangible evidence of the impact that this organization was having in schools and communities across the country. And it was incredible. And from there, I realized, and from my work there, I realized that I was really interested in learning how to build for the web, because you know, what better way to share incredible results to so many people at once then to be able to just, you know, share a website and share results really, really quickly and easily. So from City Year, I attended a software development boot camp program. And pretty much ever since then, I've been working on a range of engineering on a range of engineering teams at Boston-based tech startups pretty much ever since.

Russ White 1:51
That's cool. So tell us what is Dough's mission and what kind of inspired you and the team to start the company?

Erica Kangas 1:57
Dough's mission is to drive consumer purchase power towards women-owned businesses. Our co-founders, Vanessa and Anna, they created Dough really out of their own experiences grappling with the unique challenges that many women face in building successful companies and raising capital to grow their businesses. Before COVID, only something like 2.7% of investment dollars went to women-owned businesses. And since then, the number that number is actually shrunk to 1%. Meanwhile, only something like 20 women have founded and led a company that has gone public. So with Dough, they really wanted to create a bottom-up approach to addressing the barriers we face in growing businesses and raising capital. Because our collective purchase power as everyday shoppers is massive. If everyone in the US spent $20 a month at a woman owned business, we drive nearly $5 billion towards women led companies each month. And that kind of capital would move mountains in advancing women owned businesses and ensuring that they have what they need for their businesses to grow and thrive.

Russ White 2:58
And Erica, how do you define diversity, equity and inclusion? And why is it so important and one of your goals to build a more diverse, inclusive and equitable tech industry?

Erica Kangas 3:10
So first of all, DEI stands for diversity, equity inclusion, and I'll speak to this mostly from a from a tech perspective, you know that the tech industry can be notorious for being pretty hostile to those of us from underrepresented backgrounds. And there's so many reasons that DEI is important. And so I'll just touch on a few points. So, so personally, I think there's an inherent moral imperative behind DEI. So you know, removing systemic barriers so that we have an industry that's able to not just accommodate, but actually embrace and foster multiple pathways where people from a range of backgrounds and experiences is just the right thing to do. And, you know, for, for seeking something a little more pragmatic than you know, one reason it matters is because when we see toxic behaviors and systems and mindsets that make tech an industry where it forces people to consider or actually get pushed out of the industry. This pushes people out of the opportunity to pursue careers where they have the potential to do amazing things, and pursue the economic opportunity that a career in tech affords. So seeing people leave due to toxic environments is a loss for these people personally financial and financially, and just more generally for the advancement of the field.Another reason DEI tech is so important for is you know as for the increasing influence of technology in our lives. For many people in our country, technology plays a critical role in how we work, how we live, how we learn and, and as a society, we are in the midst of tackling so many complex problems, whether it's addressing poverty, health, systemic racism, climate, the list goes on, right? But when you have an industry that's not diverse, and it either never gets or it loses people from a diversity of backgrounds due to the lack of equitable systems or inclusive environments, you really lose out on the perspectives and experiences that have an incredibly valuable role to play in solving the big issues of our day.

Russ White 5:14
Erica, you talk about conscious consumerism, what is that? What do you mean by that?

Erica Kangas 5:18
Yeah, so for us at Dough conscious consumerism is is so important. And conscious consumerism is simply the practice of making purchase or product decisions that are really grounded in this awareness of the impact of the products you use. So for example, this could be knowing how the people who made your products are treated or compensated. This could be knowing the environmental impact of how a product was made, or even which communities you're supporting with the money you spend. You know, there are so many possible dimensions that shoppers may take into account that that really fall under this conscious consumer umbrella.

Russ White 5:58
And you also talk about more equitable technology towards social impact. What do you mean there?

Erica Kangas 6:03
Diversity, equity inclusion is core to our mission and our practice at Dough. We are not succeeding unless we are moving the needle on outcomes and making an impact for women entrepreneurs. So so far, we've featured over 600 women owned businesses. But for us, it's not just about how far we're able to reach right like diversity and inclusion, the who we bring along with us also deeply matters. So just to step back, for example, many of the e commerce systems that we engage with a shoppers actually can result in inequitable systems where often it's winner take all right, so we're only a very few merchants, taking a disproportionate majority of consumer sales on a given platform and vertical. So at Dough, we want to be intentional to ensure that we're doing as much as possible to ensure that the technology we build fosters more equitable dynamics and outcomes. So when we say we want to build more equitable technology towards social impact, that really means that we measure and analyze who on our platform gets exposure to marketplace and sales opportunities, where the money is going and how it's distributed, so that we're aware of who may be falling through the cracks. And if there's an opportunity for us to uplift and do something about it. Additionally, it also means that we don't deploy blackbox algorithms where you wouldn't have visibility into the impact of and how decisions are made on your platform that many other tech companies are willing to use even as they in the process, they inadvertently throw small businesses under the bus.

Russ White 7:35
And Erica, you touched on the pandemic earlier. It's hard not to but how has it impacted Dough and the work you do?

Erica Kangas 7:42
Yeah, sure. So at Dough leading up to the pandemic, we were actually primarily pursuing a path in wholesale business. Since at the time, we thought what better way to get women on products in front of shoppers than to get them onto store shelves. So as you can imagine, when the pandemic hit, it was pretty devastating. It was devastating for retail. And it meant that not only did we lose purchase orders, but the demand for products by small and medium brick and mortar stores, all but disappeared for us. So our team had to we had to rethink everything. And quickly. You know, last year we didn't, we didn't have the question of having access to pandemic relief. Since as so many other women and minority owned businesses were shut out of the paycheck protection program. We ourselves also found ourselves shut out of access. So our team had to make some really hard decisions, you know, we we downsized and we pivoted. And the result of our pivot would actually lead to our team building and launching direct to consumer marketplace just this past September, but you can find it joindough.com and you know, at on our marketplace, anyone can shop across hundreds of women-owned businesses all in one place at Dough. And we're really excited with all the support we've seen since then, within the first three months of launching, we drove sales, over 100 women owned businesses where 64% of sales revenue went back to underrepresented founders, including black-owned, Latinx and LGBTQIA owned brands. So we're really excited with what we're seeing so far.

Russ White 9:21
Erica, talk about both some challenges and some opportunities in creating that inclusive technology supply chain. That's a passion of yours?

Erica Kangas 9:30
I think one of the challenges that we have in front of us will be really in harnessing this constellation of supporters that we have, that all want to play a role in the success of women-owned businesses, but they just need to figure out the best way for them to do so. So for example, you know, on the one hand we have so many individuals who want to support women-owned, but just need better and easier ways to do so. So for Dough our marketplace was one major step towards enabling individuals to shop women owned. On the other hand, there are many organizations that also want to play a role in supporting women owned businesses. And so recently, we launched a corporate membership program, where companies can actually purchase bundles of dual VIP memberships for their employees. And that's been such a great way for companies to provide unique perks for their teams in a way that's aligned with their values and again, harness this collective power that we have towards supporting women-owned. As far as opportunities go, the biggest opportunity I think we have in front of us is impact. Our team is so dedicated to play a meaningful role in the success of our brands. And we invite everyone to come and join us in supporting women-owned businesses, we work with so many incredible women doing incredible work. And you know, there's so many women starting and growing small business ventures that, you know, we can't wait to, to meet and and introduce you to. So, you know, our, again, our collective purchase power is huge. And to bring that level of capital to these businesses and bring about that level of impact that we seek, it's, it's going to be an amazing thing to see.

Russ White 11:02
So Erica, based on all we've talked about, what's your advice for the Spartans today going through MSU on this, on this work world, they're going to enter what are what's kind of a skillset, you see, they need to have?

Erica Kangas 11:14
So one thing that I know, I wish I would have heard back back when I was coming out of school was to keep an open mind on your pathway. You know, even for those who know what kind of field or area we'd like to pursue, there's no single right way to go about building your career. And I think when you're when you're open-minded about the direction you take, the the opportunities to do great work can be can be surprising in a in a great way.

Russ White 11:41
So take me back, now you're in Ann Arbor coming out of high school, why was MSU the place for you, and how did your time there prepare you for where you are now?

Erica Kangas 11:50
So I was born and mostly raised in Ann Arbor. And I actually have many fond memories as a child running around the hallways at U of M's engineering school, since I was actually born while my mother was pursuing her graduate degree there. So it wasn't, you know, it wasn't a given that I would attend Michigan State. And, and it wasn't really until I had gone to East Lansing for a college visit where you even though is this entirely new environment. For me, it just felt so welcoming. You know, everyone I ran into whether it was students, faculty, staff, everyone was so warm and friendly. And I just knew it was an environment where I could see myself and where I would actually want to be and spend time. And, and once I was fortunate enough to actually receive an offer, I realized that MSU was extending me an opportunity for freedom, both financially and academically, I received a tuition grant, which allowed me to graduate without a massive, you know, burden of student debt on me or my family. And then on the academic side, because I was accepted into the Honors College, I saw that as a huge opportunity to really be able to craft my own learning experience. It's like my own learning experience, through the flexibility that that they have to offer. And it was incredible. So so my time at Michigan State really prepared me to feel like I could tackle like anything and everything I would pursue, because, you know, because MSU has so much to offer. And for me, it was like a playground, right? where not only would I be able to pursue my degrees in math and economics. But I would also have the opportunity to gain experience as a student advocate, through my time in student government, all the way to honing public speaking skills through my time with the mock trial team. So you know, so not only am I picking up the STEM education, that would be the groundwork for my early career research and evaluation and eventually in technology, but it would really also serve as this way to develop these other experiences that are really pillars to how I approach all of the non technical aspects to my work over the years.

Russ White 14:01
Spartans Wil. Erica.

Erica Kangas 14:04
Absolutely.

Russ White 14:05
I mentioned in the introduction as well, that April is National Financial Literacy Awareness Month. I know we could have a whole class on this, but just in general, how would you like the average American to be more literate when it comes to finances? What are some thoughts?

Erica Kangas 14:20
I think the incredible thing is that there are so many resources out there and that can be a blessing and a curse. Right? You know, the blessing is that there's more and more information out there for us to access. But it can be it can be harder and harder to kind of navigate those resources. And there are so many, you know, so many organizations and companies, you know, doing amazing work and building incredible products to help us kind of navigating this increasingly complex work so whether, you know, there are companies like Ellevest for example, building, you know, really incredible products geared towards women that you know, we, you know, previously didn't have, you know, the opportunity to have access to or or organizations building like financial literacy products. They're just some... Yeah, it's a it's a great time to be able to really take advantage of the resources that people are working on.

Russ White 15:11
Well, my guest on MSU Today has been Erica Kangas. She's a member of MSU's class of 2010. She's the Vice President of Engineering and a founding team member at Dough. So Erica, in closing, summarize what you want us to know about Dough and your mission.

Erica Kangas 15:25
In summary, I would love people to join us on this journey to support women-owned businesses. There are so many incredible women doing incredible work and building incredible companies and supporting women-owned goes miles in supporting these businesses to have what they need to grow and thrive. So come join us a dough and join us in this journey to support women.

Russ White 15:49
And you can do that at joindough.com that's dough as in d-o-u-g-h, joindough.com Erica, great talking with you.

Erica Kangas 15:57
Thank you so much.

Russ White 15:58
I'm Russ White, this is MSU Today.

Transcribed by https://otter.ai