In 2020, we received a call from Valtrix – the India-based developer of an EDA (electronic design automation) tool enabling semiconductor companies to verify their CPUs. Specifically developed for RISC-V CPU core and SoC designs, the debugging system is highly configurable and helps users to locate issues that would otherwise take years to pin down.
Valtrix was eager to tap into the Chinese market, inspired by the success of our former client UltraSoc in the same space. But this project wasn’t going to be easy – with strict COVID restrictions in place, Valtrix was unable to visit China and had no Chinese-speaking remote tech support. So, we quickly got to work to transform one of our Shanghai teams into “Valtrix China”, despite a number of challenges thrown our way …
Technological know-how
Firstly, our team needed to become experts on the company’s complex technology. The solution is based on a novel CPU architecture, RISC-V, which was still relatively unknown in China at the time.
Our team swiftly became a natural extension of Valtrix’s tech support as well as its local sales arm – facilitating technical demonstrations and supporting meetings in Chinese, often lasting more than three hours a time!
Building trust
As an unknown foreign company, Valtrix faced scepticism from potential customers in China. So, relationship-building was key to convince prospects not only of Valtrix’s high-quality solution but its dedicated customer service and reliability.
We travelled around China, visiting prospects and tailoring the technology pitch to all levels in the chain of command – from engineers to department heads and vice presidents.
Our team was focused on speedy replies and round-the-clock customer support, supplemented by invaluable insights from Valtrix’s CEO, who answered queries late into the evening on many occasions. This enabled engineers at our prospects to report back to their senior managers first thing the next day, demonstrating reliability and building trust between the parties.
Patience and paperwork
In China, free trials and proof of concept projects are an integral part of a purchase cycle. These often took weeks in order to integrate Valtrix’s system – but even with no cash coming in for the product and no guarantee it ever would, we kept pressing on. While many overseas companies aren’t prepared to take that leap of faith, Valtrix agreed that the China opportunity was too big to miss.
Chinese companies are also meticulous when adopting new technologies, so it took patience and dedication to secure customers. With one key prospect, we had 33 meetings to get the deal over the line!
Coveted, state-owned enterprises often yield the highest rewards – with their tendency to stay as long-term customers with hefty budgets – but they also come with a whole load of bureaucracy. To secure one lucrative deal, our team had to write a 100+ page Chinese-language technical document.
Domino effect
Through a combination of determination, our robust network in China and Valtrix’s track record in Europe and North America, we began making headway and sealing significant customers in the Chinese semiconductor market.
As we won our first few deals, we spread the word via the media and participated in major RISC-V and IC design events such as ICCAD and RISC-V Summit China, leading to more and more referrals and eventual wins.
Overall, we secured seven-figure dollar revenues with nine companies ranging from Chinese RISC-V startups to large semiconductor design houses and multinationals focusing on China-based RISC-V R&D.
The programme continued for four years until July 2024, when Valtrix was acquired by American EDA company, Synopsys. Synopsys is continuing to focus on China as a key market for the Indian innovator’s technology, building on the foundations we established.