Arguably the most exciting and rewarding investments that can be made on the Australian share market in my opinion are in companies which have small capitalisations and enormous potential.
Take for example Altium Limited (ASX: ALU). In 2011 the printed circuit board software provider had a market cap of just $9 million. Fast forward to today and the company has a market value of $1.1 billion and is targeting revenue of US$200 million by 2020.
Of course for every success story there are many failures. But by choosing carefully I believe investors can limit the risks.
With that in mind, here are five small-caps I think are worth looking closely at:
ChimpChange Ltd (ASX: CCA)
This US-based digital banking company is looking to disrupt the American banking system with its mobile platform. Targeting millennials and the underbanked, ChimpChange has been growing its user numbers at an impressive rate over the last 12 months.
Cynata Therapeutics Ltd (ASX: CYP)
I believe this regenerative medicine company could have a bright future thanks to its Cymerus technology. That technology can produce an unlimited number of high quality stem cells at a low cost. Subject to clinical trials, these will then be used to treat numerous diseases including graft versus host disease and cardiovascular disease.
GetSwift Ltd (ASX: GSW)
This exciting delivery management software provider aims to streamline a company's logistics through its innovative platform. Its software optimises delivery routes, automates the dispatch process, and provides real-time tracking alerts. Even without a salesforce GetSwift has been growing strongly and has clients in over 59 countries and 475 cities.
LiveHire Ltd (ASX: LVH)
This talent technology company provides its users with a software platform which creates a pool of pre-qualified job candidates to access when they need to recruit. By doing things this way, it saves recruiters both time and money. LiveHire recently reported an impressive 75% quarter-on-quarter increase in cash receipts thanks to strong demand from big name clients such as Wesfarmers Ltd (ASX: WES) and Bupa.
UUV Aquabotix Ltd (ASX: UUV)
This fledgling company manufactures commercial and industrial grade unmanned underwater vehicles (UUVs). There are a good number of target markets for its UUVs to be used in, including defence, law enforcement, pipeline inspection, and aquaculture. As a leader in the field with a talented and respected management team, I believe UUV Aquabotix is positioned well to make a big impact in this growing industry.
