It wasn't that long ago that tech stars Afterpay Ltd (ASX: APT) and Altium Limited (ASX: ALU) were classed as small cap shares and flying under the radar of most investors.
Today they are multi-billion-dollar companies and can be found in countless portfolios across the country.
But even more importantly, those investors that got in early are sitting on some incredible gains.
I believe this demonstrates why having a little exposure to the small side of the market can be a good thing for a portfolio.
With that in mind, I have picked out three small cap ASX tech shares which I feel have the potential to become much larger in the future. Here they are:
ELMO Software Ltd (ASX: ELO)
ELMO is a $435 million cloud-based human resources and payroll software company providing a unified platform to streamline processes. These include employee administration, recruitment, on-boarding, remuneration, and payroll. Management estimates it has a $2.4 billion opportunity in the ANZ market and a $6.8 billion opportunity in the UK market. The company also has $140 million on its balance sheet to use for acquisitions.
Nitro Software Ltd (ASX: NTO)
Nitro Software is a $430 million software company aiming to drive digital transformation in organisations around the world across multiple industries. Nitro's core product offering is the Nitro Productivity Suite. It provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution.
Whispir Ltd (ASX: WSP)
A final small cap share to watch is Whispir. It is a $390 million software-as-a-service communications workflow platform provider. Whispir provides an industry-leading software platform that allows governments and organisations to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. I believe it could be a big winner from the rise of remote working.
