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First of a two case series (395-111-1 and 395-112-1) focussing on the ups and downs of growing a business. In the (A) case a pharmaceutical executive conceives of a contract manufacturing business using a complex packaging technology and gets financial backing from a private investor. The business encounters greater difficulties than originally anticipated but receives continued support from its private backer. Four years on, the business has just made its first operating profit. The management now wants to develop a range of own-brand products, while the private investor, now heavily committed, wants to reduce his exposure. The case follows the divergence between reality and the business plan and raises the advantages and disadvantages of having a private backer. Is this a good time to raise finance from a new investor? How should the company present itself to best advantage?