There are many reasons to read financial or industry-specific papers and catch up on trends in your industry. As an entrepreneur seeking capital, it is even more crucial.
Entrepreneurs tend to be caught up in their own universe around their product, their thoughts, their peers, and fail to see their entire industry, their competitors (direct and indirect), their potential strategic partners, and potential acquirers.
This information will keep you informed, will help better position you within the market, and will make you look more professional in front of Investors.
Note that Investors are in most cases better informed than you. They meet hundreds of startups in your industry, they invested in companies in your Industry, they normally come from that Industry, they attend all the conferences, they keep up to date on all the latest trends and they have a professional relationship with "key opinion leaders" in the industry that help them during the due diligence phase.
There is another specific benefit to keeping informed.
When seeking capital, investors will look for a way to de-risk their investment as much as possible and a part of that is to look for an active M&A Market. Therefore you should be prepared to speak with an investor in their own language, meaning that you understand your exit strategy, possible returns, revenue multiples, examples of equivalent acquisitions and more.
So the next time you watch a hilarious yet meaningless YouTube video, read up on your industry instead. Try to be an active reader, dig deeper and get additional information. And most importantly, reflect on how this relates to your business, your strategy and your position in the market.