The federal government’s order to pause Sustainable Development Technology Canada’s funding of new projects could turn other investors off from participating in deals in which the agency was involved, said ArcTern Ventures managing partner Tom Rand. (The Logic)

Talking points: Ottawa temporarily suspended the agency, which gives grants to cleantech startups, after an investigation found evidence it may have violated its conflict-of-interest policy and contribution agreement. SDTC’s board has to carry out several corrective actions before it can resume funding. In a statement Thursday, Canada Cleantech Alliance, a lobby group for the industry, called for a quick resolution. “A delay of a few months can be a death sentence for a cleantech startup,” it said of the funding pause. Rand told The Logic that SDTC has been a “stalwart” in the industry and that its funding typically draws private investors into deals. “The last thing we need,” he said, “is that institution being hobbled.”