Anduril SPV controversy: Matt Grimm calls out Not Boring, Paki McCormick responds
Key Points
- Matt Grimm accused Not Boring of flipping Anduril shares through an SPV, but Paki McCormick clarified an LP forced the sale to cover personal liquidity needs, not investment opportunism.
- Late-stage private secondaries often stem from LP divorces, lawsuits, or cash emergencies rather than conviction shifts, making them procedural capital management exercises.
- The public dispute between Grimm and McCormick surfaced rare transparency around secondary market mechanics typically handled behind closed doors in venture.
Summary
Anduril Secondary Drama: Grimm vs. McCormick
On July 2, venture investor Matt Grimm publicly accused Paki McCormick's Not Boring of conducting what looked like a questionable secondary transaction in Anduril, the defense AI startup. Grimm's claim: Not Boring had raised an SPV and used it to buy into Anduril shares a couple of years ago.
McCormick pushed back directly, clarifying that Not Boring itself didn't sell. Rather, an LP in the fund had needed liquidity and forced a sale through the SPV structure. The distinction matters because it reframes the transaction from what could be read as opportunistic flipping into something far more procedural—a limited partner dealing with a personal financial squeeze.
The real lesson here is structural. Later-stage private company secondaries are genuinely messy. LPs face divorce, lawsuit settlements, or unexpected cash needs that have nothing to do with investment thesis. When that happens, they call their fund manager and say they need liquidity. The fund has to accommodate, which means finding a buyer in the secondary market. It's not sexy and it's not a signal about conviction in the company.
What's notable is that the public conversation happened at all. Most secondary drama stays quiet. Grimm raised it on the timeline, McCormick answered, and the broader venture world got a reminder that these deals are rarely about flipping for a quick win—they're about managing LP capital calls in the real world.
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