Dexcom, a medtech device company best known for its continuous glucose monitoring systems, is launching a new venture fund aimed at investing in adjacent businesses.

Called Dexcom Ventures, the new investor will be zeroing in on sensing technology, data analytics, remote patient monitoring and population health. In fact, the new venture is expected to fund companies working in glucose sensing technologies and metabolic monitoring. Steve Pacelli, who is currently serving as Dexcom's executive vice president of strategy and corporate development, has been tapped to lead the new venture.

"Driven by core technologies that our teams have developed internally, Dexcom continues to achieve strong growth and expand our future markets," Kevin Sayer, chairman, president and CEO of Dexcom, said in a statement. "By establishing Dexcom Ventures, we believe we can advance innovative technologies that enable better health outcomes and complement our growth opportunity. I have full confidence in Steve and his team as they lead this exciting new effort."

WHY IT MATTERS

We've seen more and more venture funds evolve out of payer and provider organizations; however, there have also been a few to emerge out of medical device and digital health companies. For example, Boston Scientific and Medtronic also have venture arms. Time will tell if more medtech companies follow suite.

THE LARGER TREND

Dexcom has been growing financially for some time. Last week, Dexcom closed the year out with its fourth-quarter earnings call, announcing a 23% increase from the same quarter last year, and a 31% increase for the full year revenue.

The company's main products are CGM systems. The latest version, called the G6, was FDA cleared in 2018. However, the G7 is expected to come out for a limited launch this year.

ON THE RECORD

"We strive to be value-add strategic investors by leveraging access to Dexcom's unique industry expertise and technology leadership," Pacelli said in a statement. "While we have matured as a company over the years, we still consider ourselves to be a 'start-up' of sorts. We feel well positioned to invest early and support our portfolio companies as they pioneer markets.’"