JERUSALEM, June 3 (Reuters) - Israeli venture capital fund Infinity Equity said on Tuesday it was investing $8 million in China Medicine On-Line, a national healthcare network in China.

Infinity said the investment would come from its Infinity I-China fund and would be made in two phases of $4 million.

"This is the first medical oriented investment by the I-China Fund and one that we believe will have a significant impact," Bella Ohana, life science director at Infinity Equity, said in a statement.

"Infinity's support of China Medicine On-Line, on top of its direct merit, is meant to serve as a bridge for Israeli technology companies interested in expanding into the Chinese market," she said.

China Medicine On-Line supplies a panic-button service to customers, mainly 65 years and older, in Shanghai and Nanjing.

Infinity estimates the market for the panic button at nearly $700 million and the market for future consultation services at more than $1 billion.

Infinity was founded by Israel's Clal Industries and Investments, a unit of IDB Holding Corp.