Ten years ago today the Altium Limited (ASX: ALU) share price was trading at just 24 cents. At this point the electronic design software company was a small cap share flying under the radar of the majority of investors.
Today the Altium share price is a whopping 94 times higher at $23.00 and part of a well-known group of tech shares known as WAAAX.
Any investors that were lucky enough to invest $10,000 into its shares 10 years ago would have seen their investment grow to be worth a staggering $940,000 today. And that doesn't even include the many dividends the company has paid during the period.
While success stories like Altium are certainly rare, I believe that they are possible in the tech industry if the software is good enough and market opportunity is big enough.
With that in mind, here are five small cap tech shares that I think are worth watching closely in the future:
Catapult Group International Ltd (ASX: CAT)
Catapult is a sports analytics and wearables company which counts some of the biggest and most successful sports teams amongst its client base. Its financial performance has underwhelmed over the last couple of years but there have been signs of improvements in recent months.
Citadel Group Ltd (ASX: CGL)
Citadel is a software and services company specialising in information and data management. Its key offering is its Citadel-IX cloud-based enterprise information management platform which allows users to securely access and transfer proprietary and sensitive information remotely.
ELMO Software Ltd (ASX: ELO)
ELMO Software is a fast-growing provider of cloud-based human resources and payroll software solutions in the ANZ region. Strong demand means that it recently posted a 91% increase in quarterly cash receipts on the prior corresponding period to $10.3 million.
LiveTiles Ltd (ASX: LVT)
LiveTiles is a software company offering a digital workplace platform designed to increase collaboration and efficiency among users. It has been growing at an incredible rate over the last 12 months thanks partly to its close ties with US tech giant Microsoft.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara provides a breast imaging analytics and analysis software which has captured a growing slice of the U.S. breast screening market. At the last count its high quality software had a 5.4% share of the U.S. market, with management targeting a 9% share by the end of the financial year.
