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Are these small cap ASX tech shares the next Afterpay?

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

Especially if you can catch a future mid or large cap share in the early stages of its development.

For example, the likes of Afterpay Ltd (ASX: APT) and Ramsay Health Care Limited (ASX: RHC) were small cap shares at one stage. Now they are $10 billion and $16 billion giants, respectively.

Not all small cap shares will live up to their potential, but two which I think have a good chance of doing so are listed below. Here’s why I think they are worth watching closely:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a provider of enterprise mobility software that allows sales and service organisations to increase sales win rates, reduce expenditures, and improve customer satisfaction. It has been attracting a large number of blue chip clients to its platform over the last 12 months such as Nike and Sephora.

As a result of this, its annualised recurring revenues (ARR) have been growing at a rapid rate. At the end of the second quarter its ARR had reached $32.4 million, which was a 55% increase on the same time last year. This puts the company on track to achieve its guidance of 30% to 40% organic revenue growth in FY 2020.

Straker Translations Ltd (ASX: STG)

Straker Translations is a leading translation platform provider. It uses a combination of artificial intelligence and crowd-sourced human intelligence to provide language translation services at scale.

The company has been on a bit of an acquisition spree over the last 12 months. It has been adding complementary businesses that expand both its product offering and its global footprint. I believe this leaves Straker well-positioned to continue its positive form and achieve further strong growth over the next decade.

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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 and BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN FPO, Ramsay Health Care Limited, 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.