If you're looking for exposure to the small side of the market, then you might want to consider the three small cap ASX tech shares listed below.
I believe these three tech shares have the potential to grow materially in the future. This could make them great long term options for investors:
Audinate Group Limited (ASX: AD8)
Audinate is a digital audio-visual networking technologies provider that is best known for its innovative Dante audio over IP networking solution. This industry-leading product is used widely across the professional live sound, commercial installation, broadcast, and recording industries globally. While the company has been hit hard by the pandemic, it is in an excellent position to accelerate its growth once the crisis passes. Management notes that the number of Dante enabled products manufactured by its customers is a key measure of its technology proliferation. It is also traditionally a leading indicator of future revenue growth. Pleasingly, the company has achieved 31% growth in this metric and finished FY 2020 with 2,804 Dante-enabled products on the market. I believe this bodes well for its growth over the coming years.
Mach7 Technologies Ltd (ASX: M7T)
Another small cap tech share which I think has a lot of potential is Mach7. It is a growing medical imaging data management solutions provider. Mach7's software creates a clear and complete view of the patient. This helps users with diagnoses, reduces care delivery delays and costs, and improves patient outcomes. In FY 2020 the company doubled its revenue to $18.9 million. The good news is that this is still only scratching at the surface of its sizeable market opportunity. Management estimates that its total addressable market is worth approximately US$2.75 billion per annum at present.
Whispir (ASX: WSP)
A final small cap tech share to look at is this software-as-a-service communications workflow platform provider. I think it is a great long term option for investors. Especially after a reasonably sharp pullback in its share price in recent weeks following the tech selloff. I believe Whispir has a very bright future ahead of it thanks to its industry-leading software platform. This platform allows users to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. Management estimates that the Workflow Communications platform as a Service market could be worth US$8 billion per year by 2024.
