Arguably one of the most exciting and rewarding investments that can be made on the share market in my opinion is in a company which has a small market capitalisation and strong growth potential.
Two shares which I think offer investors exactly that at the moment are listed below. Here's why I think they are small-cap shares to buy:
ChimpChange Ltd (ASX: CCA)
ChimpChange, soon to be known as Change Financial, is a US-based digital banking company which I believe has enormous growth potential. The company aims to disrupt the American banking system with its mobile platform and has been doing a great job of it.
Earlier this month the company announced its strongest quarter of customer acquisitions to date. During the quarter the company added 30,811 new customers to its platform, surpassing the 100,000 customers mark in the process. This led to its quarterly revenue rising 36% on the March quarter and 336% on the prior corresponding period.
National Veterinary Care Ltd (ASX: NVL)
With a market capitalisation of approximately $131 million, National Veterinary Care is approximately a fifth of the size of industry giant Greencross Limited (ASX: GXL). But with the veterinary market highly fragmented, I believe the company has the opportunity to close the gap significantly over the next decade through organic growth and acquisitions.
And with pet ownership at high levels and management estimating that on average 79% of dogs and 65% of cats go to the vet at least once a year, demand for its services looks likely to remain robust for some time to come.
