If you're a fan of both tech shares and small cap shares, then you're in luck because the Australian share market is home to a growing number of exciting upcoming tech companies.
Three small cap tech shares that I think are worth watching very closely are listed below. Here's why I like them:
Serko Ltd (ASX: SKO)
I think this fast-growing online travel booking and expense management provider is worth watching very closely. In FY 2019 the company experienced strong demand for its services from some of the largest companies in the ANZ region. This led to Serko posting a 28% increase in its full year total operating revenue to NZ$23.4 million. And with just over 88% of this revenue classed as recurring, I believe it has a strong foundation to build its future growth on. In FY 2020 management has given total operating revenue growth guidance of between 20% and 40%.
Straker Translations Ltd (ASX: STG)
Straker Translations is a New Zealand-based translation services platform provider. Unlike your traditional translation company, Straker uses a combination of artificial intelligence and human intelligence to provide highly efficient services at scale. As with Serko, it was an impressive performer in FY 2019, recording a 44% increase in revenue to NZ$24.6 million. Looking ahead, the company appears well-positioned to continue its growth in a market that is forecast to be worth US$66 billion per annum by 2022.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara Health Technologies is a medical technology company which has really caught the eye over the last couple of year. It provides ground-breaking software that uses artificial intelligence imaging algorithms that assist with the early detection of breast cancer. In FY 2019 the company grew its annual recurring revenues materially thanks to strong demand and an expanding footprint. This strong performance allowed the company to raise $50 million via a placement and institutional entitlement offer to fund bolt on acquisitions and support further organic growth.
