Component of the velvet transcription factor complex that controls sexual/asexual developmental ratio in response to light, promoting sexual development in the darkness while stimulating asexual sporulation under illumination (PubMed:25386652). The velvet complex hat acts as a global regulator for secondary metabolite gene expression (By similarity). Regulates expression of the carbohydrate-active enzyme gene clusters (PubMed:25386652). Component of the heterotrimeric velvet complex composed of LAE1, VEL1 and VEL2; VEL1 acting as a bridging protein between LAE1 and VEL2 (By similarity). Interacts with LAE1 (PubMed:23390613). Enriched in the nucleus in the dark (By similarity). Expression is regulated by light and darkness, but this regulation is further modulated by the carbon source in relation to the growth rate (PubMed:25386652). Expression is under the control of LAE1 (PubMed:23390613). The C-terminal PEST domain is a region rich in proline, glutamic acid, serine and threonine residues that is required for the light-dependent regulation of development and secondary metabolism (By similarity). Leads to light-independent loss of conidiation and impairs formation of perithecia (PubMed:25386652). Completely impairs the expression of cellulases, xylanases and the cellulase regulator XYR1 (PubMed:25386652). Belongs to the velvet family. VeA subfamily.