President Barack Obama on Thursday signed legislation that will help small businesses and make it easier for startups to raise capital.

Obama says it's a "potential game-changer" for American entrepreneurs hoping to build and sell the next big thing.

The legislation had bipartisan support, with backers saying it would promote job creation. Some Democrats raised concerns that the bill softened investment protections put in place after the dot.com excesses and Wall Street meltdowns, arguing it could lead to fraud and abuse.

The main part of the bill would phase in Securities and Exchange Commission regulations over a five-year period to let smaller companies go public sooner.

The bill combines a number of bipartisan bills that exempt newer companies from SEC reporting rules in order to reduce costs and red tape.