Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
RAUTH WILLIAM R III
  2. Issuer Name and Ticker or Trading Symbol
APPFOLIO INC [APPF]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director __X__ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)
C/O IGSB, INC., 1485 E. VALLEY ROAD, SUITE H
3. Date of Earliest Transaction (Month/Day/Year)
12/11/2017
(Street)

SANTA BARBARA, CA 93108
4. If Amendment, Date Original Filed(Month/Day/Year)
12/13/2017
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Class A Common Stock 12/11/2017   C(1)   40,000 (1) A $ 0 (1) (2) (3) 40,000 D  
Class A Common Stock               13,072 I (4) By IGSB IVP III, LLC

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Class B Common Stock $ 0 08/09/2017   G V   2,000   (2)(3)   (2)(3) Class A Common Stock 2,000 $ 0 372,859 D  
Class B Common Stock $ 0 12/11/2017   C(1)     40,000   (2)(3)   (2)(3) Class A Common Stock 40,000 $ 0 (1) 332,859 D  
Class B Common Stock $ 0               (2)(3)   (2)(3) Class A Common Stock (2) (3)   3,855,275 (5) I (5) By IGSB IVP III, LLC
Class B Common Stock $ 0               (2)(3)   (2)(3) Class A Common Stock (2) (3)   993,627 (6) I (6) By IGSB Internal Venture Fund III, LLC
Class B Common Stock $ 0               (2)(3)   (2)(3) Class A Common Stock (2) (3)   15,129 I See Footnote (7)
Class B Common Stock $ 0               (2)(3)   (2)(3) Class A Common Stock (2) (3)   15,129 I See Footnote (8)
Class B Common Stock $ 0               (2)(3)   (2)(3) Class A Common Stock (2) (3)   15,119 I See Footnote (8)
Class B Common Stock $ 0               (2)(3)   (2)(3) Class A Common Stock (2) (3)   15,119 I See Footnote (8)
Class B Common Stock $ 0               (2)(3)   (2)(3) Class A Common Stock (2) (3)   15,119 I See Footnote (8)
Class B Common Stock $ 0               (2)(3)   (2)(3) Class A Common Stock (2) (3)   15,119 I See Footnote (8)
Class B Common Stock $ 0               (2)(3)   (2)(3) Class A Common Stock (2) (3)   15,119 I See Footnote (8)
Class B Common Stock $ 0               (2)(3)   (2)(3) Class A Common Stock (2) (3)   15,119 I See Footnote (8)
Class B Common Stock $ 0               (2)(3)   (2)(3) Class A Common Stock (2) (3)   13,725 I See Footnote (8)
Class B Common Stock $ 0               (2)(3)   (2)(3) Class A Common Stock (2) (3)   1,407 I See Footnote (8)
Class B Common Stock $ 0               (2)(3)   (2)(3) Class A Common Stock (2) (3)   0 I See Footnote (9)

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
RAUTH WILLIAM R III
C/O IGSB, INC.
1485 E. VALLEY ROAD, SUITE H
SANTA BARBARA, CA 93108
  X   X    

Signatures

 William R. Rauth, III, By: /s/ Kimberly Shea, Attorney-in-Fact for William R. Rauth, III   06/29/2018
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) The Reporting Person acquired these 40,000 shares of AppFolio Class A Common Stock ("Class A Shares") on his conversion of 40,000 shares of AppFolio Class B Shares of common stock ("Class B Shares") that were owned by the Reporting Person.
(2) Each Class B Share is convertible, at any time at the option of the holder, into one Class A Share. In addition, Class B Shares that are sold or otherwise transferred will convert automatically, on a one share-for-one share basis, into Class A Shares, except for (i) any transfer by a partnership or limited liability company that was a registered holder of Class B Shares prior to June 30, 2015 that is made to anyone who was a partner or member of any such partnership or limited liability company prior to June 30, 2015, and (ii) any transfer to a "qualified recipient" (as defined in AppFolio's Amended and Restated Certificate of Incorporation). AppFolio's Class B Shares do not have an expiration date.
(3) (Continued from Footnote 2) However, all of the outstanding Class B Shares will convert automatically into Class A Shares, on a one share-for-one share basis, on the date when the number of the Company's outstanding Class B Shares represents less than 10% of the sum of AppFolio's outstanding Class A and Class B Shares.
(4) These Class A Shares are owned by IGSB IVP III LLC, a private investment fund, which is managed by Investment Group of Santa Barbara LLC ("IGSB"). The Reporting Person is one of the members of IGSB and may be deemed to share voting and dispositive power, with IGSB and its other members, over these Class A Shares. However, the Reporting Person disclaims beneficial ownership of these Class A Shares, except to the extent of any pecuniary interest he may have therein.
(5) These Class B Shares also are owned by IGSB IVP III LLC, which is managed by IGSB. The Reporting Person is one of the members of IGSB and may be deemed to share voting and dispositive power with IGSB and its other members over these Class B Shares. However, the Reporting Person disclaims beneficial ownership of these Class B Shares, except to the extent of any pecuniary interest he may have therein.
(6) These Class B Shares are owned by IGSB Internal Venture Fund III LLC, a private investment fund that is managed by IGSB. The Reporting Person is one of the members of IGSB and may be deemed to share voting and dispositive power over these Class B Shares with IGSB and its other members. However, the Reporting Person disclaims beneficial ownership of these Class B Shares, except to the extent of any pecuniary interest he may have therein.
(7) These Class B Shares are owned by an irrevocable trust established for one of the Reporting Person's grandchildren. The Reporting Person is the trustee of the trust and, therefore, may be deemed to possess sole voting and dispositive power over the Class B Shares owned by it. However, the Reporting Person disclaims any pecuniary interest in these Class B Shares.
(8) These Class B Shares are owned by an irrevocable trust established for another of the Reporting Person's grandchildren. The Reporting Person is the trustee of the trust and, therefore, may be deemed to possess sole voting and dispositive power over the Class B Shares owned by it. However, he disclaims any pecuniary interest in these Class B Shares.
(9) On April 21, 2017, the Reporting Person's beneficial ownership of 5,041 Class B Shares that are owned by Ospre-Point Capital, LLC ceased as a result of his resignation as its Manager. As was previously disclosed in prior reports, the Reporting Person did not have a pecuniary interest in any of those Class B Shares.

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