If you're wanting to invest in the small side of the Australian share market, I think 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 all appear to be carving out bright futures for themselves.
Here's why I think they should be on your watchlist right now:
Audinate Group Limited (ASX: AD8)
Audinate is a digital audio-visual networking technologies provider. It is best known for its innovative Dante audio over IP networking solution which is used widely across the professional live sound, commercial installation, and recording industries globally. This product is the clear market leader with a significant advantage over the competition. And while the pandemic has hit its sales greatly this year, I'm confident this is just a short term headwind and expect demand to increase materially once trading conditions improve.
Serko Ltd (ASX: SKO)
Another small cap share that has been hit by the pandemic is Serko. It is the online travel booking and expense management provider behind the Zeno Travel and Zeno Expense platforms. Zeno Travel provides AI-powered end-to-end travel itineraries, cost control and travel policy compliance to corporate customers. Zeno Expense allows its users to automate and streamline the expense administration function, identify out-of-policy expense claims, and prevent fraud. As with Audinate, I believe demand will bounce back strongly when the pandemic passes and travel markets return to normal.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is a healthcare technology company that uses artificial intelligence to assist with the early detection of breast cancer. It achieves this by analysing mammograms and associated patient data. Users can then use this software to provide clinical decision support and practice management tools in a cost-effective way. Volpara is currently generating NZ$19.9 million in annual recurring revenues (ARR), but estimates that it has a US$750 million ARR opportunity in breast cancer screening.
