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4 exciting small cap ASX shares that could be stars of the future

If your risk profile allows for it, I think a little exposure to the small cap side of the market can be a good thing for a portfolio.

After all, the likes of Afterpay Touch Group Ltd (ASX: APT) and Ramsay Health Care Limited (ASX: RHC) were small caps at one stage. And anyone lucky enough to have invested in their shares at that stage will have generated incredible returns.

With that in mind, here are four exciting small cap shares which I think could have very bright futures:

Audinate Group Limited (ASX: AD8)

Audinate is a digital audio-visual networking technologies provider. In FY 2019 it delivered a 44% increase in revenue to $28.3 million and 395% rise in EBITDA to $2.8 million. This was driven by the significant expansion of Dante product offering and increased adoption by Original Equipment Manufacturers (OEMs). I expect similarly strong growth in FY 2020.

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a provider of enterprise mobility software. This software allows sales and service organisations to increase sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity. Earlier this month it announced a three-year deal with sports giant Nike, which I feel bodes well for its performance this year.

Serko Ltd (ASX: SKO)

Serko is an online travel booking and expense management provider. Thanks to strong demand from new and existing customers, in FY 2019 Serko posted a 28% increase in total operating revenue to NZ$23.4 million. One key metric that stood out for me was that 88% of this revenue is recurring, which I feel gives it a firm foundation to build on in FY 2020.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a provider of software that uses artificial intelligence imaging algorithms to assist with the early detection of breast and lung cancer. It has been a very impressive performer over the last few years thanks to the growing popularity of its software with radiologists across North America. I expect this positive form to continue this year, especially with the help of recent acquisitions.

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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 AFTERPAY T FPO, Serko Ltd, and VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and BIGTINCAN FPO. The Motley Fool Australia has recommended Ramsay Health Care Limited, Serko Ltd, and VOLPARA FPO NZ. 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.

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