Transcription factor. Essential for ventral specification of the early cephalic (head) ectoderm during gastrulation, playing a role in the non-neural versus neural cell fate choice. Binds to DNA via the target sequence 5'-[AG]TAAA[CT]A-3', with 5'-ATAAACA-3' being the preferred binding site. Initially localized to the animal hemisphere (the presumptive ectoderm) of early-mid blastula embryos. Becomes restricted to head placodes, excluding the otic placodes, by the tailbud stages. Expression begins at the early-mid blastula stage. Levels are highest during the blastula and gastrula stages, after which levels decreases until somite segregation. At later developmental stages, expressed at a slightly lower level than foxi1-B. Induced by Bmp-signaling. Suppressed by Wnt-signaling.