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Could these small cap ASX shares be the next Altium and Appen?

I think a little exposure to the small side of the Australian share market can be a good thing for a portfolio.

After all, it wasn’t that long ago that market darlings Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) were classed as small caps.

Since then they have generated mouth-watering returns for long-term shareholders. With that in mind, here are three small cap shares for your watchlist today:

Alcidion Group Ltd (ASX: ALC)

One exciting small cap share that I think is worth watching very closely right now is Alcidion. It is a growing informatics solutions company which provides software that aims to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. Thanks to the quality of its software and the growing trend for healthcare organisations to shift to a paperless environment, I believe it is well-positioned for strong growth over the coming years.

Bigtincan Holdings Ltd (ASX: BTH)

Another small cap share to look closer at is Bigtincan. It is a provider of enterprise mobility software, This allows businesses to increase their sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity. It counts a growing number of blue chip companies as customers. These include the likes of sports giant Nike and pharmaceutical company Merck.

Straker Translations Ltd (ASX: STG)

A final small cap share to watch is Straker Translations. As its name implies, Straker is a translation services platform provider. I believe it has strong long term growth potential thanks to its quality offering and massive global market opportunity. It uses a combination of artificial intelligence and human intelligence to provide highly efficient language translation services at scale. In FY 2019 it reported a 44% increase in revenue to NZ$24.6 million. Pleasingly, it has started FY 2020 just as strongly. In the first quarter management reported first quarter cash receipts growth of 38%.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia owns shares of Altium and Appen Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd and Straker Translations. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.