Probable transcription factor. Required for smooth muscle (visceral mesoderm) differentiation during gut development. Also required for normal proliferation of the lateral plate mesoderm. Acts as a downstream mediator of bmp4-signaling. At the late gastrula stage, expressed in the presumptive ventrolateral mesoderm. During neurulation and tailbud stages, expressed in the lateral plate mesoderm and in the neural crest-derived structures of the head and branchial arches. During tailbud stages, expressed in the pronephros and pronephros ducts and in cells that migrate from the dorsolateral plate to the ventral region of the embryo (with the notable exception of the heart). These cells may represent hematopoietic or endothelial progenitor cells. Expression begins at late gastrula/early neurula stage and increases towards the end of embryogenesis. By bmp4, probably acting indirectly via t/bra. Also induced to a lower extent by fgf and activin.