Kiwi video subscription firm VideoTaxi lands investment from private equity firm Oculus Investments

Ondrej Havas is looking to take his business model abroad. Photo / Supplied

A private equity investment firm has invested "several millions of dollars" in a Kiwi video production company.

VideoTaxi founder Ondrej Havas confirmed to the Herald that Oculus Investments had invested in his company to accelerate both domestic and international growth.

Havas wouldn't be drawn into commenting on how much had been invested in the company, but he did say VideoTaxi's current valuation sat at between $5 million and $10 million.

Oculus Investments is a New Zealand-owned and operated private investment firm, focused on helping business owners expand their businesses.

As part of the deal, Mark Lewis and Michael Earby from Oculus will join the board of VideoTaxi.

The Oculus investment will give the company a 63 per cent share in the business, while Havas will retain 30 per cent.

The remaining share is divided equally between co-founders Bruce Knoetze and Eddie Burrow.

While there's no shortage of production companies in New Zealand, Havas rethought the commercial model when he started the firm in 2018.

The company operates on a subscription basis, which sees corporates signing on for an annual subscription for unlimited access to videographers and editors.

The company already counts AA Insurance, Countdown, Placemakers, KiwiRail, Chorus, Fletcher Steel and Mercury among its clients.

"In addition to these larger corporate customers, we work with government and some really great charities in areas like conservation and mental health," says Havas.

Asked for the company's retention rate, Havas said they are targeting SaaS (software as a service) level retention rates.

SaaS companies usually aim for a churn rate of no more than 8 per cent per annum.

Havas says that the company's subscription model is highly competitive compared with rivals in the market.

The business is based on a subscription model that gives companies access to videographers and editors. Photo / Supplied

"Our unique subscription-based business model effectively managed to corporatise the one-man band," says Havas.

"We've distilled all the benefits of a successful self-employed videographer and supported them with a professional infrastructure. As a result, we deliver quality at a price the traditional production houses and agencies simply can't match."

Havas says the investment from Oculus will go toward expanding to offer a nationwide service, hiring new staff, upgrading edit suites and camera kits, and improving IT infrastructure.

"We also see the potential to franchise our business model internationally," says Havas.

The company has already made a few international moves, striking a deal with a New York-based production house in 2019.

His aim now is to push even further into the international market and capitalise on similar opportunities abroad.