One of the most promising tech companies to have emerged out of Australia in recent years is Afterpay Touch Group Ltd (ASX: APT).
In just a few short years the buy now, pay later provider has come from nowhere to be on the verge of disrupting the global credit card industry.
Unsurprisingly, this has created significant wealth for its shareholders. In just over 18 months the Afterpay Touch share price is up a massive 400%.
With that in mind, I thought I would scour the small cap tech space to see if there are any up and coming tech companies with similarly strong growth potential.
Two that I think investors ought to watch closely are listed below:
Atomos Ltd (ASX: AMS)
While I don't think Atomos is necessarily going to grow to be the size of Afterpay Touch, if it continues its strong sales growth I can't see it remaining at a market capitalisation of ~$120 million for very long. Atomos is a global video technology company that listed on the Australian share market at the end of last year. Its technology enhances video content creation by producing monitor-recorder products that connect the imaging and computer worlds together. The company looks to be well-positioned to benefit from the expected growth in original content spending and the rise in professional-amateur content creators over the next decade. This year management advised that sales are expected to increase 18.5% to $42.25 million.
LiveTiles Ltd (ASX: LVT)
Another small cap tech share that I think investors ought to keep a close eye on is LiveTiles. It is a digital workplace platform provider which has been growing at an explosive rate over the last 18 months. Pleasingly, this explosive growth has continued in FY 2019. Last week the company advised that it had more than tripled its annualised recurring revenue (ARR) over the last 12 months. The engagement of a specialist sales force helped take its ARR to $22.9 million at the end of December, up a massive 232% on the same time last year.
