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 hat acts as a global regulator for secondary metabolite gene expression (By similarity). Controls the expression of the melanin gene cluster (PubMed:21115702). Mediates the light-stimulated formation of aerial mycelia (PubMed:21115702). Component of the heterotrimeric velvet complex composed of LAE1, MVE1 and VEL2; MVE1 acting as a bridging protein between LAE1 and VEL2 (By similarity). Enriched in the nucleus in the dark (By similarity). Impairs melanin biosynthesis (PubMed:21115702). Abolishes the light-stimulated formation of aerial mycelia (PubMed:21115702). Results in abnormal hyphal swelling, increases sensitivity to shaking force and significantly reduces hydrophobicity (PubMed:21115702). Belongs to the velvet family. VeA subfamily.