With investments concentrated at the seed stage and exit activity tepid, YoY funding to legal tech startups dropped 16%.

Venture capital investors completed over 30 deals in the last year to legal tech startups ranging from data-driven LexisNexis alternatives to eDiscovery analytics platforms. But while the overall U.S. legal industry is estimated to be in excess of $300B, funding to legal tech startups barely topped $100M in the last year, with the uptick in Q1’13 funding largely coming from digital forensics company AccessData’s $45M funding round.

The $101M invested in the last year represented a decline of 16% in YoY funding despite a 41% increase in YoY deal activity. With LA-based LegalZoom which is backed by Polaris Partners, Institutional Venture Partners and Kleiner Perkins delaying its IPO last August and exit activity consisting primarily of M&A of companies that are not doing well, industry headwinds appear to be hindering funding growth within the legal tech ecosystem.

Looking for legal tech financing and exit data? Try CB Insights.  We are the universe’s best venture capital database – seriously.

In the last two years, 61% of deal activity in the legal tech space took place at the Angel/Seed stage with Q1’13 seeing 10 Angel/Seed deals including EasyESI and eBrevia. But just over 10% of deal activity in the same period occurred at the Series C stage or later.

Silicon Valley captured more than 1 of every 4 legal tech deals in the past two years with companies including Lex Machina, Y-Combinator alum Lawdingo and Google Ventures-backed Rocket Lawyer. About 16% of deals go to the NY Metro area followed by SoCal, which took 14%. of all deals.

A breakdown of exit trends within the legal tech space can be found on the ‘Research’ tab, after logging in to CB Insights. (Note: This research is only available to paid subscribers with access to CB Insider.)