It wasn't that long ago that market darling Altium Limited (ASX: ALU) was classed as a small cap share.
Whereas today it is a $4.7 billion technology company with the potential to keep on growing strongly for many years to come.
I believe this demonstrates why it can be well worth having a little exposure to the small side of the market.
But which shares should you buy? My money would be on these small cap ASX shares:
Alcidion Group Ltd (ASX: ALC)
One small cap share which I think is worth watching very closely is Alcidion. It is an informatics solutions company which provides software aiming to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. Given the growing trend for healthcare organisations to shift to a paperless environment, I feel Alcidion is well placed for long term growth.
Audinate Group Limited (ASX: AD8)
Another small cap to watch is Audinate. It is an exciting digital audio-visual networking technologies provider which has been growing at a very quick rate in recent years. This has been driven by the significant expansion of its Dante product offering and the increased adoption by Original Equipment Manufacturers (OEMs). Due to the quality of the Dante product and its move into the lucrative video market, I expect its strong growth to continue in FY 2020 and beyond.
Serko Ltd (ASX: SKO)
A final small cap to watch is Serko. It is the online travel booking and expense management provider behind the Zeno Travel and Zeno Expense platforms. Zeno Travel provides AI-powered end-to-end travel itineraries, cost control and travel policy compliance to corporate customers, whereas Zeno Expense allows users to automate and streamline the expense administration function, identify out-of-policy expense claims, and prevent fraud. Demand for its products has been growing very strongly, leading to it delivering strong recurring revenue growth in recent years. I expect more of the same in FY 2020 and for many years to come.
