Ask HN: When you raised money, did you use an offering memo?

We are about to raise $1.5 M in the US from a set of people who are not business angels.

Our lawyer is telling us that for that amount we do not need a complete offering memorandum, but that we still need to have him draft a legal document explaining the risks involved in the investment. It seems legitimate but I've never heard of such a thing.

The cost of preparing this document is around $5k, so I'm wondering whether we really need it.

I'm interested in feedback from those of you who have raised money knowing what you were doing (in other words, who know for sure whether this document is necessary or not) - keep in mind that the investors are not professional investors.

Thanks - much appreciated.