Wellington, May 5 NZPA - A new investment partnership is looking to invest between $8 million and $10 million developing globally focused medical diagnostics businesses in this country.

The partnership is between government-supported fund manager the New Zealand Venture Investment Fund (NZVIF) and private investment company New Zealand Diagnostics (NZDx).

NZDx director William Randall today said some promising technologies emerging in New Zealand could have considerable commercial potential.

New diagnostic technologies enabled the delivery of better and more efficient treatment, as healthcare costs rose around the world, he said.

NZDx had already invested in eBonz, which developed 3D anatomically based models of all joints in the human body, and Manawatu Diagnostics, which was developing human fertility medical diagnostic technology.

NZVIF said the partnership with NZDx was the ninth partnership NZVIF had entered through its $40m Seed Co-Investment Fund, which was investing into early stage companies with strong potential for high growth, alongside investments made by its partners.

The agreement with NZDx was replacing an earlier partnership with Chrysalis, a life sciences investment company.

So far NZVIF had invested more than $17.6m into 21 companies through Seed Co-Investment Fund partnerships.

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