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 (By similarity). The velvet complex acts as a global regulator for secondary metabolite gene expression (PubMed:20154111). Controls the expression of the gliotoxin gene cluster (PubMed:20154111). Plays a key role in mycoparasitism (PubMed:20154111). Component of the heterotrimeric velvet complex composed of LAE1, VEL1 and VEL2; VEL1 acting as a bridging protein between LAE1 and VEL2 (By similarity). Enriched in the nucleus in the dark (By similarity). 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). Exhibit early chlamydospore differentiation under nutrient stress conditions (PubMed:20154111). Impairs gliotoxin production and induction of other secondary metabolism-related genes including genes encoding nonribosomal peptide synthetases, 2 polyketide synthases, an O-methyl transferase, and cytochrome P450 (PubMed:20154111). Impairs mycoparasitism (PubMed:20154111). Belongs to the velvet family. VeA subfamily.