If you're wanting to invest in the small side of the Australian share market, then the three small caps listed below could be worth a closer look.
While there is certainly still a lot of work to be done, they could have very bright futures ahead of them. Here's why they could be worth adding to your watchlist:
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PlaySide Studios Limited (ASX: PLY)
PlaySide Studios is a Port Melbourne-based video game developer. It has a portfolio of 55 games across a range of categories, including self-published games based on original intellectual property and games developed in collaboration with Hollywood studios. The latter comprises titles relating to Jumanji, The Walking Dead, and Disney Pixar's Cars. The company has also just signed a deal with Paramount for the Godfather franchise. Management estimates that PlaySide has a global market opportunity worth a total of $77.2 billion per annum.
Serko Ltd (ASX: SKO)
Another small cap share to watch is Serko. It is an online travel booking and expense management provider behind the Zeno Travel and Zeno Expense platforms. The former provides AI-powered end-to-end travel itineraries, cost control and travel policy compliance to corporate customers. Whereas the latter allows users to automate and streamline the expense administration function, identify out-of-policy expense claims, and prevent fraud. While the COVID-19 pandemic has hit the company hard, it has a very strong balance sheet and equally bright long term growth potential. This is thanks to the growing popularity of its platforms and its game-changing deal with travel giant Booking.com.
Volpara Health Technologies Ltd (ASX: VHT)
A final small cap to watch is Volpara. It is a healthcare technology company that uses artificial intelligence to assist with the early detection of breast cancer. The company achieves this by allowing users to analyse mammograms and associated patient data. They can then use this software to provide clinical decision support and practice management tools in a cost-effective way. Volpara is currently generating ~US$18.6 million (~NZ$27.9 million) in annual recurring revenues (ARR), but estimates that it has a US$750 million ARR opportunity in breast cancer screening alone. This gives it a significant runway for growth.
