Braveheart Investment said its portfolio business Paraytec has demonstrated it can give a sepsis diagnosis in a fraction of the time needed for standard-of-care tests.
In trials, Paraytec said its CX300 instrument detected and discriminated gram-positive and gram-negative bacteria in a sample from human blood in approximately 90 minutes against a minimum of 24 hours in a blood stain test.
Identifying the right type of bacteria is crucial in administrating the appropriate antibiotic, Paraytec added.
Professor Carl Smythe, at the University of Sheffield's School of Bioscience, said: "The Paraytec test has been shown to be highly effective in distinguishing between gram-positive and gram-negative bacteria.
This is a significant achievement and a point-of-care instrument using this technology could provide diagnosing clinicians with a rapid indication of which antibiotic type to prescribe, as well as the likely location of infection and degree of virulence.
Ron Daniels, chief executive of the UK Sepsis Trust, added: "Sepsis is a life-threatening condition arising when the body's response to infection causes organ damage: in the UK alone sepsis claims an estimated 48,000 lives annually and globally is responsible for one in five lives lost.
Rapidly distinguishing between gram-positive and gram-negative bacteraemia will help target antibiotics and guide the search for the source of infection."
Braveheart holds a 100% equity interest in Paraytec and earlier this week said it was seeking a buyer for the business.
Shares rose 3% to 8.5p.