Averto Medical

About Averto Medical

Averto Medical, founded in 2016 by Kenton D Fong, MD, is a clinical-stage medical technology company headquartered in Fremont, California. Initially incorporated as Savage Medical, Inc., the company is focused on developing solutions for patients with gastrointestinal diseases. Dr. Fong, who also serves as the CEO, leads the company's mission to enhance care for individuals undergoing colorectal surgeries. The management team is strengthened by the appointment of Dr. Ken Song, a physician and serial entrepreneur with a track record of leading successful life sciences companies, as Executive Chairman.

The company's core product is the ColoSeal™ Intraluminal Colonic Diversion System. This device is engineered to provide a minimally invasive alternative for patients undergoing procedures like colorectal cancer resection, who might otherwise require a temporary diverting stoma (ostomy). An ostomy can be a debilitating procedure, and the ColoSeal™ system aims to improve patient recovery, reduce complications associated with traditional surgical methods, and enhance overall quality of life. The target market for this technology is substantial, with the potential to assist over 100,000 patients annually.

Averto Medical operates as a privately held company and has secured significant financial backing to advance its technology. In May 2024, the company announced the closing of an oversubscribed Series A financing round of $30.5 million. This funding, led by Cormorant Asset Management with participation from other healthcare investors like Venrock Healthcare Capital Partners and LifeSci Venture Partners, is designated for advancing clinical testing of the ColoSeal™ system towards regulatory approvals. The company has raised a total of $33 million across five funding rounds, which also includes grants from the National Cancer Institute (NCI) of the National Institutes of Health (NIH) to support clinical evaluations. A major milestone was achieved in February 2025 when the U.S. Food and Drug Administration (FDA) granted the ColoSeal™ system a Breakthrough Device Designation, a move that expedites the development and review process for devices treating life-threatening or debilitating conditions.