Phantom GI Raises $5M to Develop Needle-Based Alternative to Ostomy Surgery

Phantom GI, a Tel Aviv-based medical technology startup, has raised $5 million in seed funding to develop a minimally invasive alternative to conventional ostomy surgery. The company's device, PercStoma, is designed to create an ostomy through a needle-based procedure under local anaesthesia, potentially reducing the complexity of treatment for patients who cannot undergo major surgery.

The funding round was led by Pitango HealthTech, with participation from RAD Biomed and RUNI Ventures. Phantom GI plans to use the capital to advance PercStoma's development and support its first clinical trials in the United States.

Founded in 2025, the company is targeting a procedure that can be particularly difficult for patients with serious bowel conditions, including cancer-related obstructions.

However, PercStoma remains investigational and has not received regulatory approval. Its proposed procedure time, clinical benefits and ability to replace conventional surgery still need to be established through further testing.

The medical experience behind Phantom GI

The idea behind Phantom GI emerged from a clinical case in 2023.

Eran Shlomovitz, a surgeon and interventional radiologist, treated a woman with a bowel obstruction caused by cancer who was not a candidate for conventional surgery. Using standard medical equipment and X-ray guidance, he performed a procedure that relieved the obstruction.

According to the company, the patient was subsequently able to eat normally, return to work and continue cancer treatment.

The experience highlighted a difficult problem in gastrointestinal care: some patients need an ostomy or relief from a bowel obstruction but may not be suitable candidates for a major surgical procedure.

Phantom GI was established to develop a device that could offer a less invasive approach.

The startup was founded by CEO Ido Sadan, with Shlomovitz serving as chief medical officer and Dr. Eliahu Bekhor as chief scientific officer.

How PercStoma is designed to work

An ostomy creates an opening that allows intestinal waste to leave the body through an opening in the abdomen, typically into an external collection bag. It can be necessary for patients with certain bowel diseases, obstructions and other medical conditions.

Conventional ostomy creation generally involves surgery under general anaesthesia. An incision is made in the abdomen, and a portion of the intestine is brought to the surface to create the stoma.

PercStoma is designed to approach the procedure differently.

The company proposes using a single-needle puncture guided by X-ray imaging, with the procedure performed under local rather than general anaesthesia.

Phantom GI estimates that the procedure could take approximately 20 minutes.

The company also aims to simplify stoma reversal. It says the stoma could potentially be removed in a doctor's office, avoiding another major operation.

With conventional reversal surgery, the company notes that up to half of eligible patients may be unable to undergo the second procedure.

These are the intended benefits of the technology. PercStoma has not yet received regulatory approval, and clinical evidence will be needed to establish its safety, effectiveness and suitability for different patients.

Addressing patients with limited treatment options

Phantom GI is particularly interested in patients with malignant bowel obstructions who are not suitable for conventional surgery.

For these patients, treatment options can be limited, especially when a major operation carries substantial risks or is not feasible.

The company's scientific leadership believes that a minimally invasive, percutaneous approach could expand the range of treatment options available to these patients.

Phantom GI estimates that more than 100,000 bowel obstruction patients in the United States could potentially benefit each year. The company also identifies another potential patient population of approximately 100,000 people with conditions such as inflammatory bowel disease who seldom receive a stoma.

These are company estimates of potential patient populations, not confirmed numbers of patients who would be eligible for or benefit from PercStoma.

Clinical studies will need to determine which patients could safely receive the procedure and how its outcomes compare with existing treatment options.

A large ostomy care market

Phantom GI is entering an established medical care market.

Mordor Intelligence estimates that the global ostomy care market was worth $3.47 billion in 2025 and could reach $4.3 billion by 2030, representing a projected compound annual growth rate of 4.42%.

Ostomy bags account for a large share of the market, reflecting the ongoing needs of people living with stomas.

PercStoma is not simply another ostomy care product. Its focus is on how the stoma is created and potentially reversed, rather than on the collection products used after the procedure.

If clinical trials establish that the device is safe and effective, it could offer an alternative approach for selected patients and potentially reduce the burden associated with conventional surgery.

But the size of the overall ostomy care market does not, by itself, establish the commercial opportunity for a new surgical device. Adoption will depend on clinical evidence, regulatory clearance, physician acceptance and the needs of eligible patients.

Pitango HealthTech leads the $5M round

The $5 million seed round was led by Pitango HealthTech, with RAD Biomed and RUNI Ventures also participating.

The funding will support PercStoma's development and its first clinical trials in the United States.

Dr. Jonathan Glazer, a partner at Pitango HealthTech and a former head of ambulatory care services in the emergency department at Tel Aviv Sourasky Medical Center, said the company was challenging a surgical approach that has defined ostomy creation for decades.

The investment reflects interest in medical technologies that could simplify complex procedures and potentially extend treatment options to patients who cannot undergo conventional surgery.

For Phantom GI, the immediate priority is moving from an investigational device toward clinical evaluation.

The key questions clinical trials must answer

PercStoma's proposed advantages are significant, but the technology still faces important clinical questions.

Researchers will need to establish whether the procedure can be performed safely, whether the resulting stoma remains open and functional, and how outcomes compare with established surgical methods.

The long-term performance of the stoma is particularly important. A procedure that is quick to perform would still need to demonstrate reliable results over time.

Clinical testing will also need to clarify which patient groups are suitable for the device, what complications may arise and whether the proposed reversal method is practical.

The initial studies in patients who are not suitable for conventional surgery are expected to provide early evidence about its potential.

What comes next for Phantom GI?

With $5 million in seed funding, Phantom GI plans to develop PercStoma and support its first clinical trials in the United States.

The startup's goal is to make ostomy creation less invasive, potentially reducing the burden of treatment for patients who face limited options.

The opportunity rests on a clear clinical problem, but the path to adoption will depend on evidence rather than the proposed 20-minute procedure time alone.

For now, PercStoma remains under investigation. Demonstrating safety, reliable stoma function and meaningful benefits for eligible patients will determine whether Phantom GI can turn its approach into a viable alternative to conventional ostomy surgery.