Write Off

A write-off is the complete removal of an asset’s value from a company’s financial statements, usually because the asset is no longer recoverable or has become worthless. In venture capital and private equity, write-offs typically occur when a portfolio company fails or when an investment becomes insolvent. Write-offs are a critical component of risk management, helping investors clean up their books and focus on more promising opportunities.

• Complete removal of an asset's value from financial statements.
• Occurs when assets are irrecoverable or worthless.
• Common in VC and PE when portfolio companies fail.
• Key for risk management and financial clarity.