If you're a fan of small cap shares then you're in luck because there are a good number of promising companies trading at the small end of the market right now.
Three small cap shares that I think are worth watching very closely are listed below. Here's why I think they could be destined for big things:
Audinate (ASX: AD8)
Audinate is a provider of digital Audio-Visual networking technologies. The main product in its arsenal is the award-winning Dante audio over IP networking solution. The company has been experiencing exceptionally strong demand for Dante from professional live sound, commercial installation, broadcast, public address, and recording industries globally, leading to impressive sales growth. Although its recent third quarter result was a little disappointing, I think it is well worth keeping a close eye on its development. Especially with the company rolling out new product initiatives.
LiveTiles Ltd (ASX: LVT)
Another small cap tech share to watch is LiveTiles. It is a digital workplace platform provider and award-winning Microsoft Partner. Demand for its offering has been growing at an incredible rate in recent years, leading to stellar annualised recurring revenue (ARR) growth. This strong form has continued in FY 2019 with the company recently revealing that its ARR had more than tripled to $34.5 million at the end of the third quarter. Management isn't resting on its laurels, though, and appears confident it can grow its ARR to $100 million by the end of June 2021.
Volpara Health Technologies Ltd (ASX: VHT)
One of my favourite small cap tech shares is Volpara Health Technologies. It is a medical technology company which provides increasingly popular software that uses AI imaging algorithms to assist in the early detection of breast cancer. It recently provided its full year update which revealed that its share of the U.S. breast screening market had grown to 7.1%. Pleasingly, more market share gains are expected in FY 2020 thanks to the quality of its product, the expansion of its salesforce, and recent favourable regulatory proposals.
