GlaxoSmithKline, hoping to stake a claim in the emerging therapeutic area of bioelectronics, said it has created a $50 million strategic venture capital fund to invest in both drugs and technologies.

The fund, dubbed “Action Potential Venture Capital,” is expected to complement the work of GSK’s bioelectronics R&D unit, which was established in 2012. The name of the fund is borrowed from the name for electrical signals that move through the nerves in the body.

Changes or irregular patterns of action potentials can occur in a broad range of diseases. By harnessing miniaturized devices or bioelectronic drugs, GSK believes it can read the patterns, change them, and treat disorders ranging from inflammatory diseases, such as rheumatoid arthritis and inflammatory bowel disease, to asthma and metabolic diseases.

The field of bioelectronic medicine is in its very early stages. GSK’s goal, through, is to have the first bioelectronic therapy ready for approval by the end of this decade.

“We want to help create the medicines of the future and be the catalyst for this work,” says Moncef Slaoui, chairman of R&D and architect of GSK’s early stage investment strategy. “GSK can play the integrating role that is needed to drive this new type of medical treatment all the way from the bench to the patient and this fund is a key part of our efforts.”

The fund’s first investment is in SetPoint Medical, a California company that is developing an implantable device for treating inflammatory diseases. The Valencia, California-based company hopes to use its implantable devices that stimulate the body’s vagus nerve to treat such diseases as rheumatoid arthritis and inflammatory bowel disease. The treatments have been developed based on the new understanding that the immune system can be influenced by the nervous system. Inflammatory diseases were previously thought to be accessible only by molecular medicines. The company believes this may provide a more precise way than conventional approaches to treating such ailments.

Action Potential Venture Capital, which will be based in Cambridge, Massachusetts, expects to invest in five to seven companies over the next five years. This will include startups focused on bioelectronic medicine, existing companies with technologies that interact with the peripheral nervous system to block or stimulate electrical impulses, and companies advancing technology platforms to drive these therapies.

Imran Eba will move from GSK’s worldwide business development organization to serve as the fund’s first partner. He is expected to work closely with the company’s bioelectronics R&D unit.

The addition of the venture fund is intended to be a critical component of the company’s broader bioelectronics strategy. GSK is also offering up to 20 new bioelectronic-related exploratory research grants and creating a network of investigators. It is also engaging in broader research community efforts to advance work and stimulate interest in the relationship between nerves and a range of diseases. In addition, it plans to soon announce the first global bioelectronic summit and the launch of a million dollar innovation prize.