Israeli MedTech startup Phantom GI has raised $5 million in Seed funding to develop its minimally invasive technology for ostomy procedures. The company is working on a less invasive alternative to traditional ostomy surgery, especially for patients who may not be able to safely undergo major surgery.

The funding round was led by Pitango HealthTech. The new investment will help Phantom GI continue developing its technology and move forward with clinical work. Pitango HealthTech invests in healthcare companies working across areas such as medical devices, digital health, and life sciences.

Dr. Jonathan Glazer, a partner at Pitango HealthTech and a former head of the ambulatory care service in the emergency department at Tel Aviv Sourasky Medical Center, said: “Phantom GI’s exceptional team is challenging the surgical paradigm that has defined ostomy creation for decades. This shift to a percutaneous approach could reduce treatment complexity and significantly expand who can be treated.”

The new funding will help Phantom GI continue developing PercStoma and prepare for clinical testing and future commercial launch. The company aims to offer a faster and less invasive option for some patients who currently need high-risk surgical procedures.

Phantom GI was founded in 2025 and is led by Ido Sadan, Co-Founder and CEO. The company is developing medical technology that aims to make ostomy procedures simpler and less invasive.

Its main technology, PercStoma, is designed to create an ostomy through a single access point instead of traditional surgery. The system enters through the abdominal wall and places a specially designed stent in the bowel. According to the company, the procedure could take around 20 minutes, with patients potentially leaving the hospital within three days.

Phantom GI is initially focusing on patients who are considered too high-risk for conventional surgery. The company estimates that up to 55,000 patients in the US each year fall into this group and may have limited treatment options.