Right, that's the usual meaning, but it's quite unusual for software companies to be debt financed, isn't it? SaaS companies usually go the venture route AFAIK.
Also, many startup investments use debt instruments like convertible notes instead of direct equity purchases.
There's no free lunch, but taking investment can let you achieve great things and build incredible communities. Just make sure you talk with founder/banker/lawyer friends who have seen the dark side of things, and use their experiences as armor.