Six microcaps to consider adding to your portfolio in 2025
This year's 14th annual Australian Microcap Investment Conference brought together over 20 of the country's most innovative small-cap companies across biotechnology, fintech, renewables, and emerging tech.
While optimism was evident, a common thread among presenters was a focus on commercialisation and profitability, a shift from the early-stage narratives that dominated past conferences.
Healthcare and advanced technology once again led the conversation, with standout presentations from companies pioneering breakthroughs in cancer treatment, medical imaging, hydrogen technology, and AI-driven drone operations. The tone this year was pragmatic: visionary, but grounded in measurable progress.
What is a microcap?
Microcaps are companies with a market capitalisation of less than $500 million that are listed on the Australian stock exchange (ASX).
They can be faster-growing and more innovative than large cap companies.
Which microcaps are worth watching?
Let's examine six companies that stood out from the crowd, each offering a distinct perspective on growth and innovation within the microcap space.
Starpharma Holdings Limited (ASX: SPL)
Sector: Biotechnology/pharmaceuticals
Starpharma is using its proprietary dendrimer technology to enhance the delivery and performance of pharmaceutical drugs.
Its DEP platform (Dendrimer Enhanced Products) is designed to improve the efficacy and safety of existing oncology and antiviral treatments by controlling drug release and reducing toxicity.
The company licenses its technology to major pharmaceutical partners.
Fundamentals and outlook
Starpharma holds around $32 million in cash and continues to focus on advancing its oncology pipeline and expanding licensing partnerships. With a shift toward commercialisation, the company looks positioned to transition from R&D-heavy operations to revenue generation.
Technical view
SPL has been trading between $0.08 and $0.16 for the last two years; however, in September, optimism clearly sparked as the share price surged by over 150%.
Additionally, the volume of shares traded was the greatest since September 2023, when the last flush-out occurred. Currently, it is trading around $0.30 and looking likely to push higher.
A break above $0.35 may signal the start of a new long-term uptrend, with significant upside potential to $0.60 before any major resistance.
Raiz Invest Limited (ASX: RZI)
Sector: Fintech/WealthTech
Raiz is Australia's leading micro-investment platform, which enables users to invest spare change into diversified portfolios automatically.
With over 325,000 monthly active users and $1.7 billion in funds under management, Raiz continues to innovate through its Raiz Super and Plus portfolios, as well as products like Raiz Jars and Raiz Rewards, which gamify saving and investing for everyday Australians.
Fundamentals and outlook
Raiz turned around its FY23 performance to deliver a positive EBITDA of $1.3 million, up from a $2.4 million loss, signalling operational maturity. Continued expansion into Southeast Asia could provide further growth opportunities.
Technical View
Raiz has been in a long-term uptrend since the low of $0.30 in June 2023. It's now trading around the critical $0.90 level, which historically has acted as both support and resistance.
This will be a hurdle to overcome, given there was a significant pullback last time it reached this point in February. A break above $0.90 could open the way to $1.20, which would be a solid return if managed well.
RocketDNA Limited (ASX: RKT)
Sector: AI/drone technology/data intelligence
RocketDNA is a multinational drone-based data and AI company providing aerial surveying, mapping, and inspection services to industries such as mining, agriculture, and engineering.
Its technology leverages AI-driven analytics and autonomous drone systems to deliver faster, safer, and more precise operational insights.
Fundamentals and outlook
Revenue is being supported by multi-year contracts with Tier 1 clients, including South32 and Newmont, alongside expansion across Africa.
The company's Remote Operations Centre (ROC) now operates 24/7, marking a significant step toward recurring revenue and scalability.
Update from 2024
RocketDNA was one of our featured picks last year, and it's great to see the company evolving from its expansion phase to consistent execution.
The technology has gained traction, and while still a speculative name, renewed buying interest suggests investors are starting to take notice.
Technical view
RocketDNA has been trading within a range from $0.006 to $0.017, making it a good stock for traders who understand this type of stock. The current price is sitting closer to the upper end of that range and looking like it may challenge that level again.
This is a significant level and one the stock has found tough to break, but if successful, there's clear upside potential toward $0.028 in the short to medium term, with longer-term momentum likely if management continues to deliver.
Hazer Group Limited (ASX: HZR)
Sector: Clean energy/hydrogen
Hazer Group is commercialising its proprietary low-emission hydrogen and graphite production process known as the Hazer Process. The demand for both hydrogen and graphite is expected to grow over the coming years.
This innovation by Hazer converts natural gas into clean hydrogen using iron ore as a catalyst. The significance of this process is that it is helping decarbonise industries such as steelmaking and energy storage.
Fundamentals and outlook
Construction of its Commercial Demonstration Plant in Western Australia is well underway, supported by government funding and strategic partnerships.
A major announcement was the recent deal with KBR, the largest engineering company in the world, to accelerate the licensing and commercialisation of Hazers' technology. The company maintains a solid cash position, providing runway to complete its next growth phase.
Technical view
Hazer is looking strong technically, forming consistently higher highs and higher lows, with price now tightening within a range that often precedes a breakout. It has already broken through the critical $0.45 level that had been resistance, and has successfully retested it in a show of buying strength.
Volume has also increased since May and remained elevated, also signalling strong market interest. The next key resistance level is around $0.70.
EMVision Medical Devices Limited (ASX: EMV)
Sector: Medtech/imaging
EMVision is developing portable, non-invasive brain imaging devices that can diagnose stroke and other neurological emergencies quickly, potentially revolutionising emergency medicine.
The company's goal is to bring hospital-grade imaging to ambulances and rural areas where time is critical.
Fundamentals and outlook
EMVision is progressing well with its clinical trials and product development, backed by federal grants and partnerships with major hospitals. The company remains in the commercialisation phase, with strong institutional backing.
Technical view
EMV has been in a broad sideways consolidation since early 2024 after bouncing off the $1.10 level. It's now trading around $1.80, with $1.65 forming a key support zone.
Volume has picked up significantly in recent months, indicating growing interest in this stock. If price can trade above the $2.10 level with continued strong volume, EMV could become a strong long-term runner.
Tryptamine Therapeutics Limited (ASX: TYP)
Sector: Biotechnology/psychedelic medicine
Tryptamine Therapeutics is tapping into one of the most fascinating frontiers in medicine, the therapeutic use of psychedelics.
The company is developing an intravenous psilocin formulation aimed at treating depression, PTSD and other mental health disorders, providing a controlled, medical-grade approach to psychedelic therapy.
By focusing on precision dosing and clinical safety, Tryptamine is turning "trippy science" into a serious biotech proposition.
Fundamentals and outlook
Still in early clinical stages, Tryptamine is well-funded to advance its Phase 2 studies, targeting measurable outcomes in mental health treatment, a space gaining global traction and investor attention.
Its benefit over other psychedelic therapies is that it is more controlled, works faster, has full reversibility and is effective.
What is also a bonus for this stock is who is behind it. The son of Johnson and Johnson founder and the biggest pharma companies in the world is on the board and driving the movement.
It was also evident that the company was setting up for a potential takeover. A competitor in the space sold for over a billion, and TYP operations are far more advanced than that competitor.
Technical view
It's obviously early days for this stock, which has drifted between $0.03 and $0.045 for a couple of years. Liquidity is on the lower side, but the pattern is intriguing, as volume spikes on upward price moves, suggesting genuine buyer interest.
A major surge in November 2024 triggered a rise in price of 50%, followed by another 30% lift in September. Price is holding near $0.040; if it can hold that level and break above $0.045 with another burst in volume, this stock could be in for the "trip" of a lifetime. Again, it is early days, so investors need to take this into consideration.
Final thoughts
This year's conference underscored a maturing microcap landscape, one where proof of execution is replacing the promise of potential. The mood from all companies presenting was more bullish than we have seen in the Microcap conference over the past couple of years.
Investors should be interested in the companies that can demonstrate commercial traction, recurring revenue, or clinical progress.
These are the companies that are starting to separate themselves from those still in the concept phase. As we have seen in past conferences, the companies in the concept phase can take a few years before they really gain traction, and for investors, this means lower risk.
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