I'm sure most readers will be very familiar with Australian tech shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX).
These tech shares have been growing at an exceptionally strong rate over the last few years and are now multi-billion dollar companies.
But it wasn't always that way. Both companies were at one stage small cap tech shares flying under the radar.
Anyone that identified them at that stage and bought (and held onto) their shares, will have generated significant wealth.
With that in mind, I have been scouring the small cap side of the market for tech shares that I think could follow in their footsteps over the coming years.
Three small cap tech shares that I think investors should have on their watchlists are listed below. Here's why:
Bigtincan Holdings Ltd (ASX: BTH)
The first small cap tech share to watch is Bigtincan. It is a fast-growing provider of enterprise mobility software. The company's software allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction. Users achieve this through mobile worker productivity improvements. Management estimates that its total addressable market will be worth US$5 billion by 2021.
ELMO Software Ltd (ASX: ELO)
Another small cap to watch is ELMO. It is a cloud-based human resources and payroll software company. Its platform has been growing in popularity over the last few years, leading to very strong sales and earnings growth. The good news is ELMO still only has a very small share of an addressable ANZ market estimated to be worth $2.4 billion per year. And given how its platform is jurisdiction agnostic, it could grow its addressable market by expanding internationally in the future.
Whispir (ASX: WSP)
A final small cap tech share to watch is Whispir. It is a communications platform as a service (CPaaS) provider. Its industry-leading software platform allows organisations to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. The CPaaS market is growing at a rapid rate and is expected to be worth US$6.7 billion per year by 2022.
