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 in the blastula and gastrula stages, after which levels decrease until the somite segregation stages. Expression persists to later developmental stages at a slightly higher extent than that of foxi1-A. Induced by Bmp-signaling. Suppressed by Wnt-signaling.