JERUSALEM (Reuters) – Israel’s Pitango Venture Capital said on Thursday it was launching a fund that will reach $150 million to invest in health technology.

The new HealthTech Fund will operate alongside Pitango’s Early Stage Tech and Growth funds, it said.

In its first investment, the fund will invest $7 million in Variantyx, which has developed genomics diagnostics technologies.

Pitango said the fund’s investments will focus on ventures in digital health, health IT and medical technologies, as well as diagnostics, biopharma, food technologies and agricultural technologies.

“We are witnessing incredible technological breakthroughs alongside the challenge to find cost-effective solutions for the soaring costs of healthcare,” said Guy Ezekiel, Pitango’s general partner.

“This creates outstanding opportunities for Pitango to further develop our healthcare portfolio to a point where it deserves its own dedicated fund.”

(Reporting by Steven Scheer)