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2 exciting small cap ASX shares that could be destined for big futures

I like to keep a close eye on the small cap side of the market. This is because many of the most popular shares on the market at the moment such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) were small caps once.

And anyone that was lucky enough to have picked up their shares at that point, will have generated mouth-watering returns over the last few years.

With that in mind, I thought I would look to see if there are any small cap shares which could follow in their footsteps in the 2020s.

Two small cap shares that I think have a lot of potential are listed below:

Bigtincan Holdings Ltd (ASX: BTH)

I think this growing provider of enterprise mobility software could have a very bright future. Its software allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction. This is achieved through mobile worker productivity improvements provided by the Bigtincan Hub platform. It has a sizeable market opportunity, which management currently estimates will be worth US$5 billion by 2021. Incidentally, the Bigtincan share price jumped higher today after signing a contract with Red Bull.

ELMO Software Ltd (ASX: ELO)

Another small cap which I think has a lot of potential is ELMO. It provides businesses with a cloud-based human resources and payroll software platform. Demand for the platform has been very strong, leading to ELMO delivering stellar sales and earnings growth in recent years. Pleasingly, ELMO still only has a very small share of an addressable ANZ market estimated to be worth $2.4 billion per year. It also has the option to expand its addressable market further by expanding internationally in the future. If this is a success, then I suspect the ELMO share price could be heading a lot higher from here.

5 stocks under $5

We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

*Extreme Opportunities returns as of June 5th 2020

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 and recommends Elmo Software. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BIGTINCAN FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO and Elmo Software. 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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