In the past couple of years the likes of Altium Limited (ASX: ALU) and Afterpay Touch Group Ltd (ASX: APT) have gone from being small cap shares to billion dollar enterprises in the blink of an eye.
While not all tech shares are destined to be as successful as these two companies, I believe that there are a number of up and coming tech companies on the local share market which have the potential to grow significantly in the future.
Two small cap tech shares which I think investors should have on their watch list today are listed below. Here's why I like them:
Bravura Solutions Ltd (ASX: BVS)
One of my favourite shares in the financial technology, or fintech, space would have to be Bravura Solutions. I think the company would be a good option for investors thanks largely to its increasingly popular wealth management software product Sonata. Demand for the platform has been growing so strongly over the last 12 months that it now accounts for 55% of the company's total revenue. Furthermore, this demand recently led to management upgrading its full-year underlying earnings per share growth guidance to the high-teens. I continue to believe its shares are good value based on its current growth profile.
People Infrastructure Ltd (ASX: PPE)
People Infrastructure is a recently-listed workforce management company that aims to deliver innovative solutions to the management of contracted workforces in Australia and New Zealand. It provides contracted workforce and human resources (HR) outsourcing services to enhance the HR function of its clients. Last month the company reported half-year revenue of $106.7 million and profit after tax of $1.9 million. This was a massive 467% and 420% increase, respectively, on the prior corresponding period and puts it in a position to beat its prospectus forecasts.
