Probably not. Form 1099-C is for canceled debt. You said that you had invested in the company. Big difference! An investment generally gives no consideration to time or rate of return... it is hoped for, but not stated. A loan on the other hand, which would thus create the debt, would document the time frame of repayment and a stated interest rate. So a loan gone bad would create bad/canceled debt, while an investment gone bad would create a capital loss.
However, as an investment, you can write off the loss on Schedule D, that is after the company has closed down or filed for bankruptcy protection (not when you "decide" that company won't make it.) You can net any gains made that year against the loss, and write up to $3K of losses off against other taxable income. If the losses exceed that amount, you can carry the loss forward into future years. (There is a consideration for Section 1244 Small Business Stock, but that is another situation all together.)
I hope this helps.
Russell Tuncap, CMA, CPA
Tuncap Accounting - Home Page