Divvy Homes, a property tech startup backed by Andreessen Horowitz and Tiger Global Management, laid off about 12% of its staff Tuesday. The cuts reflect how younger real estate firms are responding to rising mortgage rates that have battered the home-buying market.

The layoffs affected roughly 40 employees at the five-year-old firm. Divvy Homes buys homes in the U.S. and rents them to people who don’t have the credit history or savings to buy, but hope to eventually purchase the homes. The firm, valued last year at about $2 billion, has raised over $500 million in equity and debt, according to PitchBook.