Software that manages corporate projects over the Internet is gaining momentum, leading software startups from around the world to relocate to the United States -- the biggest  business market.

One such company is Clarizen, an Israeli software startup, that moved to Silicon Valley earlier this month to tap the growing demand for project management software. “Being close to the market is not only a statement, it’s something that you need to commit to do,” said CEO Avinoam Nowogrodski.

Project management software helps companies manage resources, time, people, and  budgets. According to research firm Gartner, the project management market is worth $750 million a year worldwide, and is growing 11 percent annually.

Companies like Clarizen offer this software as a service over the Internet for a monthly subscription fee per user. The online delivery medium helps employees working remotely log into their company’s system from anywhere.

Although Clarizen’s software development will remain largely in Israel, Mr. Nowogrodski and the company’s sales and marketing staff are based in San Mateo, California. Clarizen has yet to unveil a commercial version of its software but says more than 1,000 customers have signed up for its beta version that was launched in June.

Because the project management software market has heated up, venture capitalists are also showing interest in the world of on-demand software. Clarizen, for instance, received $7 million in first round funding last December from top tier VCs Benchmark Capital and Carmel Ventures.

Competitors in this space are also attracting funding. Seattle-based eProject received a $12 million second-round funding last May from Bay Partners and Kennet Partners. Orem, Utah-based AtTask received a $7 million first-round funding from OpenView Venture Partners in June. SmartSheet.com, based in Bellevue, Washington, is a company that provides an on-demand version of Microsoft’s Excel software. The company announced last June that it received $4 million in a first-round funding led by Madrona Venture Group.

Despite all the competition, Mr. Nowogrodski believes there is enough to go around for everyone. “Most companies are doing project management,” he said. “When you have an objective to achieve and have a group of people, you need to plan the activity and that is when project management comes in.”