Phantom GI Raises $5M Funding to Make Ostomy Surgery Minimally Invasive

Phantom GI, the Tel Aviv-based medical device startup, has raised $5 million in seed funding led by Pitango HealthTech, with participation from RAD Biomed and RUNI Ventures. The round follows a full grant from the Israel Innovation Authority and an oversubscribed pre-seed round, bringing total disclosed funding to approximately $5 million+.

The funding comes as Phantom GI prepares to begin its first phase of clinical studies in the U.S. for PercStoma, a device designed to create an ostomy without the major abdominal surgery that currently defines the procedure . The technology emerged from a single case in 2023, when co-founder Dr. Eran Shlomovitz treated a patient with malignant bowel obstruction who had been deemed inoperable—and successfully decompressed her bowel using a minimally invasive method under X-ray guidance .

Phantom GI Funding Overview By CREDX Media

Startup Name	Phantom GI
Founders	Dr. Eran Shlomovitz (CMO), Dr. Eliahu Bekhor (CSO), Ido Sadan (CEO)
Founded	2025
HQ	Tel Aviv, Israel
Round	Seed Funding
Amount Raised	$5M
Valuation	Not disclosed
Category	Medical Devices, Interventional Radiology, Surgical Innovation
Lead Investor	Pitango HealthTech
Key Investors	RAD Biomed, RUNI Ventures, Israel Innovation Authority
Total Funding Raised	~$5M+ (including grants and pre-seed)
Employees	Early-stage (1 listed on IVC)
Key Device	PercStoma
Target Procedure Time	~20 minutes

💡 Use of Funds

• Device Development: Advancing the PercStoma device toward clinical readiness.
• U.S. Clinical Studies: Initiating first-phase clinical trials in the United States.
• Regulatory Pathway: Preparing for FDA engagement and regulatory submissions.

Startup Overview: Phantom GI

What Phantom GI Is Building in Simple Words

Phantom GI is developing PercStoma, a device that creates an ostomy through a single needle puncture under local anesthesia and X-ray guidance—instead of the conventional abdominal incision and general anesthesia required for surgical ostomies .

• Needle Puncture Access: A physician accesses the bowel through a single puncture rather than an abdominal incision.
• Local Anesthesia + X-Ray Guidance: The procedure is performed under local anesthesia with X-ray imaging, not general anesthesia.
• Proprietary Stent: Once the bowel is accessed and secured, a stent is positioned between the bowel and the skin, allowing contents to pass into a standard stoma bag.
• 20-Minute Target: Phantom GI is targeting a procedure time of around 20 minutes.
• Office-Based Reversal: The stoma is designed to be reversed through a rapid, office-based procedure rather than another major operation.

Why Phantom GI Matters

1. Some Patients Are Too Sick for Surgery For patients with malignant bowel obstruction, creating an ostomy can relieve the blockage and allow them to resume eating and continue treatment. But for the sickest patients, the surgery itself is considered too risky . Phantom GI is targeting exactly this inoperable population.
2. The Mortality and Cost Burden Is Severe As many as 55,000 people in the U.S. die each year directly from malignant bowel obstruction, while the cost of care can reach $70,000 per surgical procedure .
3. Reversal Is a Major Barrier Surgical ostomies often require a second operation to restore normal intestinal pathway—and complications from reversal mean that as many as 50% of eligible patients ultimately cannot undergo the procedure . PercStoma is designed for office-based reversal.
4. Broader Applicability Beyond Inoperable Patients Dr. Eliahu Bekhor estimates that more than 100,000 U.S. bowel obstruction patients could potentially benefit from a minimally invasive approach each year . While the initial focus is on inoperable patients, the company argues that avoiding major surgery could have implications for patients who are technically eligible for an operation.

Startup Story: From One Patient’s Case to a New Surgical Paradigm

Phantom GI didn’t start with a market thesis. It started with a patient who had no options.

In 2023, Dr. Eran Shlomovitz, Phantom GI’s co-founder and chief medical officer, encountered a woman with malignant bowel obstruction who had been deemed inoperable. Rather than accepting that conventional surgery was her only option, Shlomovitz developed a method using commercially available interventional devices to reach and decompress her bowel under X-ray guidance .

With the patient’s consent, he performed the procedure successfully. According to the company, she was subsequently able to return to a normal diet, go back to work, and resume treatment for her cancer .

That experience became the starting point for PercStoma. The company was founded in 2025 by Shlomovitz, Dr. Eliahu Bekhor, and CEO Ido Sadan. Shlomovitz’s clinical training spans general surgery, medical imaging, and therapeutic endoscopy—a combination directly suited to a device that bridges interventional radiology and surgical ostomy creation.

The company received a full grant from the Israel Innovation Authority and closed an oversubscribed pre-seed round before raising the $5 million seed led by Pitango HealthTech .

Our Take on Phantom GI

Phantom GI is solving one of the least glamorous problems in medicine—ostomy creation for patients who can’t survive the surgery—and that’s precisely why it matters.

Surgical ostomies are a life-saving intervention for bowel obstruction patients. But the sickest patients—those with advanced cancer, severe comorbidities, or fragile physiology—are often excluded from the very procedure that could restore their ability to eat and continue treatment. Phantom GI’s insight is that ostomy creation doesn’t have to require general anesthesia and a major abdominal incision. A needle puncture, local anesthesia, and X-ray guidance may be sufficient .

The $5 million seed is justified on multiple fronts: a compelling origin story grounded in a real patient outcome, a clear clinical need with measurable mortality and cost burden, and a founding team with deep interventional and surgical expertise. Pitango HealthTech’s leadership signals that experienced healthcare investors see potential in the approach.

The real risk is clinical validation. Phantom GI is at the earliest stage of development—the company was founded in 2025 and is only now preparing for its first phase of U.S. clinical studies . The PercStoma device must demonstrate safety and efficacy in humans before it can reach the inoperable patients it targets. Until then, the technology remains promising but unproven.

For now, Phantom GI has capital, clinical insight, and a clear thesis: make ostomy creation accessible to patients who currently have no surgical option.

Founder Background: The Interventional Radiologist Who Solved an Unsolvable Case

Dr. Eran Shlomovitz (CMO and Co-Founder) brings a unique combination of clinical training to Phantom GI. His background spans general surgery, medical imaging, and therapeutic endoscopy—a blend that informed the development of a procedure bridging interventional radiology and surgical ostomy creation. The PercStoma concept emerged directly from his hands-on experience treating a patient deemed inoperable .

Dr. Eliahu Bekhor (CSO and Co-Founder) provides scientific leadership and estimates that more than 100,000 U.S. bowel obstruction patients could potentially benefit from a minimally invasive approach each year .

Ido Sadan (CEO and Co-Founder) leads the company’s commercial and operational strategy. His framing of the problem is direct: “There is a group of patients today for whom the standard surgical option is simply too invasive, and in some cases, not an option at all” .

The Minimally Invasive Surgery Race Nobody Expected

Phantom GI operates in a space where surgical innovation is increasingly focused on reducing invasiveness and recovery burden.

The broader trend in medical devices is toward percutaneous and endoluminal approaches—procedures that access internal anatomy through small punctures or natural orifices rather than open incisions. Phantom GI applies this philosophy to ostomy creation, a procedure that has remained fundamentally surgical for decades.

The competitive moat, if it materializes, would be procedural simplicity. A 20-minute procedure under local anesthesia, performed in an interventional radiology suite or even an office setting, would be a fundamentally different care model than general anesthesia in an operating room . Whether the approach can deliver the intended benefits safely is still an open question.

Founder Intelligence: What Founders Can Learn from Phantom GI

• Solve a problem you’ve seen firsthand: Shlomovitz developed PercStoma because he treated a patient who had no other options. The best medical device ideas often come from clinical practice, not market research.
• Start with the patients who have no alternatives: Phantom GI is targeting inoperable patients first. Proving the technology in the most desperate cases creates a foundation for broader adoption.
• Build the reversal into the design: Surgical ostomies often can’t be reversed. PercStoma is designed for office-based reversal, addressing a major quality-of-life issue from the start.
• Clinical validation is the only milestone that matters: The company was founded in 2025 and is preparing for U.S. clinical studies. Everything depends on whether PercStoma works safely in humans .

Investor Intelligence: Why This Round Gets Premium Capital

Pitango HealthTech led the round—one of Israel’s most established healthcare venture funds, with deep experience in medical devices and clinical-stage investments.

RAD Biomed and RUNI Ventures participated, bringing medical device and early-stage expertise. The Israel Innovation Authority provided a full grant, signaling government validation of the technology’s potential .

The investor composition matters: Pitango’s healthcare focus suggests conviction in the clinical thesis, while RAD Biomed’s participation brings device development and regulatory expertise.

The Road Ahead for Phantom GI

Expansion Targets

With $5 million in capital, Phantom GI will:

• Develop the PercStoma device toward clinical readiness
• Begin first-phase U.S. clinical studies
• Prepare for FDA engagement
• Establish clinical evidence for safety and efficacy

Competitive Response

Expect:

• Traditional ostomy device manufacturers to explore minimally invasive alternatives
• Surgical robotics and interventional radiology platforms to address ostomy creation
• New startups targeting specific bowel obstruction interventions
• Phantom GI’s moat: procedural simplicity + inoperable patient focus + interventional expertise

Conclusion

Phantom GI’s $5 million seed funding validates the thesis that ostomy creation doesn’t have to require major surgery. The company’s PercStoma device—developed from a single patient case where no other options existed—targets the inoperable patients who currently have no surgical path forward.

Market tailwinds favor Phantom GI: 55,000 U.S. deaths annually from malignant bowel obstruction, $70,000 per surgical procedure, and a 50% reversal failure rate . The company’s minimally invasive approach and clinical leadership position it to address a gap that surgical ostomies cannot fill.

For deep analysis of medical device funding, surgical innovation, and companies reshaping patient care, explore CREDX Media for comprehensive coverage of startup funding trends, valuation intelligence, and founder playbooks.

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Frequently Asked Questions

1. What is Phantom GI’s total funding and latest round size?
Phantom GI has raised $5 million in seed funding led by Pitango HealthTech, following an oversubscribed pre-seed round and a full grant from the Israel Innovation Authority .

2. How much did Phantom GI raise in its seed round and who led the investment?
Phantom GI raised $5 million in seed funding led by Pitango HealthTech, with participation from RAD Biomed and RUNI Ventures .

3. What is the valuation of Phantom GI?
Phantom GI did not disclose its post-money valuation in the seed round. The company was founded in 2025 and is at an early stage of development .

4. Who are the major investors in Phantom GI?
Major investors include Pitango HealthTech (seed lead), RAD Biomed, and RUNI Ventures. The Israel Innovation Authority provided a full grant .

5. What is Phantom GI’s PercStoma device?
PercStoma is a device that creates an ostomy through a single needle puncture under local anesthesia and X-ray guidance, instead of conventional abdominal surgery and general anesthesia .

6. Who are Phantom GI’s founders?
Phantom GI was founded in 2025 by Dr. Eran Shlomovitz (CMO), Dr. Eliahu Bekhor (CSO), and Ido Sadan (CEO). Shlomovitz’s clinical training spans general surgery, medical imaging, and therapeutic endoscopy .

7. What problem does PercStoma solve for patients?
PercStoma targets patients with bowel obstruction who are currently considered inoperable because conventional surgery is too risky. It offers a minimally invasive alternative for creating an ostomy .

8. How does PercStoma compare to conventional ostomy surgery?
Conventional ostomy involves an abdominal incision and general anesthesia. PercStoma uses a needle puncture, local anesthesia, and X-ray guidance, targeting a procedure time of around 20 minutes .

9. What are Phantom GI’s plans for the $5 million seed capital?
Phantom GI will use the funding to develop the PercStoma device and begin the first phase of clinical studies in the U.S. .

10. What is the market opportunity for Phantom GI?
As many as 55,000 people in the U.S. die each year directly from malignant bowel obstruction, and more than 100,000 U.S. bowel obstruction patients could potentially benefit from a minimally invasive approach annually .

11. Who is the CEO of Phantom GI?
Ido Sadan serves as CEO and co-founder of Phantom GI. His framing of the problem: “There is a group of patients today for whom the standard surgical option is simply too invasive, and in some cases, not an option at all”.